Fixing current economic conditions will not be quick and easy, according to The Conference Board’s latest economic forecast. Negative growth rates for the U.S. economy will continue through the fourth quarter and result in further contraction for the first half of 2009.
 
If government and business leaders can calmly -and privately -focus squarely on a way out of all this, looking to prevent tomorrow’s fires even as they fight today’s, we can still avoid worse,”says Bart van Ark, vice president and chief economist of The Conference Board. “This means finding a crucial balance between the short-run steps needed to get the economy back on its feet and the long-run needed to foster a new phase of global growth.”
 
European and Asian markets are also beginning to see the same market-slowing as the U.S. Next week’s annual meeting of the International Monetary Fund and the World Bank Group will draw much attention as business communities around the world look for some sign of relief from the international organizations.
 
Also in the forecast, The Conference Board expects no easing of pain in the U.S. housing market before the first half of 2009. Additionally, short-term credit markets will continue to be strained, which will have a clear impact on day-to-day business operations.
 
Click here for the complete forecast.
 
The Conference Board publishes information and analysis, makes economics-based forecasts and assesses trends, and facilitates learning by creating dynamic communities of interest that bring together senior executives from around the world.

UPDATE: The Federal Reserve cut interest rates. The committee said: “The committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures. Incoming economic data suggest that the pace of economic activity has slowed markedly in recent months. Moreover, the intensification of financial market turmoil is likelyt o exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.”