Electronic Bulletin, July 2008, No. 7

Electronic Bulletin, Electronic Bulletin
Public Affairs Section, U.S. Consulate General, Hong Kong
July 2008, No. 7

(The Electronic Bulletin is an information service published by the Public Affairs Section of the U.S. Consulate General and provided to subscribers by e-mail and fax. Except for the U.S. Government sites, the opinions expressed on the Internet sites listed here do not necessarily represent the views of the U.S. Government.)

Monetary Policy Report to the Congress
Submitted pursuant to section 2B of the Federal Reserve Act
Board of Governors of the Federal Reserve System
July 15, 2008

This report is available online. (PDF file)*

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The U.S. economy and financial system have confronted some significant challenges thus far in 2008. The contraction in housing activity that began in 2006 and the associated deterioration in mortgage markets that became evident last year have led to sizable losses at financial institutions and a sharp tightening in overall credit conditions. The effects of the housing contraction and of the financial headwinds on spending and economic activity have been compounded by rapid increases in the prices of energy and other commodities, which have sapped household purchasing power even as they have boosted inflation. Against this backdrop, economic activity has advanced at a sluggish pace during the first half of this year, while inflation has remained elevated.

(Source: Chairman Ben S. Bernanke, Semiannual Monetary Policy Report to the Congress, Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, July 15, 2008)

Subject: U.S. Economy