Sorry Asteve, I must learn to read all the posts before posting anything 
still i haven't again so apologies if you have posted this already 
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/22/cnfed222.xml
Stagflation fears move Fed to curtail rate cuts
Last Updated: 2:48am BST 22/05/2008
The US Federal Reserve has signalled the end of its recent run of interest rate cuts amid fears that the American economy is set to enter a new period of stagflation.
The news sent US equity markets tumbling, with the Dow Jones Industrial Average closing down 227.5 points at 12601.2 as investors came to terms with the Fed's change of tack.
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The Fed believes that prospects for both the American housing and employment markets remained 'bleak'
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The central bank said its most recent rate cut at the end of April was a "close call," with the majority of the Federal Open Market Committee (FOMC) believing that further reductions are unlikely even if the economy contracts further.
Minutes from the meeting of the FOMC - the central bank's interest-rate setting body - showed a surprise reduction in the Fed's growth predictions for the US economy, down to 0.3pc-1.2pc for 2008 from its previous forecast of 1.3pc-2pc set three months ago.
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Always amazes me how the 'authorities' put across in the media these 'issues' as though they are completely unaware that there would ever have been a problem 
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