Retail deposits (which include NOW accounts as well as savings, small time deposits, and similar instruments) had begun to decelerate in the first quarter, slowing
to a pace of less than 4 percent from the 5 3/4 percent rate seen in the fourth quarter of 1989.
The growth of nonfinancial debt was trimmed to 8 percent in 1989, about in line with the slowing
in the growth of nominal GNP, and ended the year at the midpoint of its monitoring range.
In view of the policy restraint already in place, which was being reflected in slowing
growth in the monetary aggregates, and some signs that economic growth may have been moderating, the Committee postponed any further action over the late summer and early fall, awaiting further information on the course of the economy.
Most measures of labor costs indicated some slowing
in the rate of increase over the summer months, after a sharp upward movement in the second half of 1987 and early 1988.
We believe it is prudent to wait until early July for another shot at lower interest rates since slowing
monetary growth suggest further signs of economic slowing
," Dent said.
After a sharp slowing
in home sales and prices in February, housing indices continue to rebound strongly.
But lawmakers complained at the hearing of the House Judiciary Committee's Subcommittee on Immigration that the new safeguards were slowing
the INS' citizenship activities to a crawl.
But there may be some more bumps along the way as stocks will continue to see slowing
economic statistics and earnings on a lag into the fall, before signs of a solid acceleration in economic growth and earnings start to emerge around mid-summer to late 2005.
This is the first time in humans we've seen such a slowing
of decline,'' said Mary Sano, the lead author and an associate professor of clinical neuropsychology at Columbia University College of Physicians and Surgeons.
Corporate Profits Are Likely to Mean Fresh Gains for High Quality Stocks
However, financial markets, which have been looking for signs of a slowing
economy that would keep the Federal Reserve from increasing interest rates, brushed off the widening deficit.
Also, analysts' forecasts of profits over the rest of this year for the S&P 500 have not budged much in recent months, slowing