Will the Economy Grow Slowly?

The Federal Reserve cut interest rate again, which is explained as the fear of inflation. As we all know, the financial turmoil of subprime mortgage hurt the economy, which would cause a series of results, such as less consumption of households and bad performance of large firms.

The Fed is trying to save the economy, however what we know is the oil price keeps increasing and once more than $100 a barrel, which will give negative impact on the growth of economy. The reason that high oil price will hurt the growth of economy is that oil is related to almost every part of the economy, such as transportation, manufacturing, and even food and drink.

In my opinion, the economy will slow down at least for a whole year.