From the Associated Press:

The Federal Reserve acknowledged Wednesday that the economy is growing more slowly than it expected. But it said it will complete its $600 billion Treasury bond buying program by June 30 as planned and announced no further efforts to boost the economy.

Ending a two-day meeting, the Fed repeated a pledge to keep interest rates at record lows near zero for “an extended period,” a promise it’s made for more than two years.

Fed officials said in a statement that they think the main causes of the economy’s slowdown, such as high gas prices and supply disruptions from Japan’s disasters, are temporary. Once those problems subside, Fed officials said the economy should rebound.

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One of the many blessings of running my own accounting firm are the relationships that I build with people I would have never met otherwise. After running in the Republican primary for my congressional district last spring, I had yet another group of incredible new friends and partners. Through some of those new friends, I was put in touch with an American businessman living in Japan who had an absolutely incredible story of how the recent tsunami had affected his life and the lives of those closest to him.

Phil Foxwell grew up and has since raised his family in Japan, maintaining a summer home in the rolling hills of a sleepy Japanese fishing town called Shichigahama, which lies northeast of Sendai, the city hardest hit by the tsunami. Set in an idyllic, pine wooded valley surrounded by hills on three sides, it was a refuge for harried Tokyo-ites wishing to escape the summer heat. For Phil, a trip to Shichigahama is more than just a getaway, it’s a family reunion. For years, he has invested in the aging community, many of whom he has known since his childhood and grown up alongside. They are his friends, and his family. His first-hand account of a journey to find what he was certain would be more death and desolation ended as something very different indeed.

This is an incredible story of God’s provision and protection in a time when people question how God could let such a thing happen. This is a story that has motivated me to go above and beyond the ordinary in supporting those who have lost their home and livelihood, or even a loved one. I want to encourage you to get involved in the rebuilding of Japan as they suffer through what is described as the most devastating natural disaster in the modern era, upwards of 20,000 lives lost and $250 billion in damages. In addition, please pray for the survivors and their families, and also the rescue workers who are doing what they can with scarce resources and constant threat of radiation exposure. Japan is in dire need of a miracle. Read this incredible story by Phil Foxwell to see one that already happened.

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On April 3^rd, Chinese artist and citizen investigator Ai Weiwei was taken into custody by his government while attempting to fly from Beijing to Hong Kong. Initially, Chinese law enforcement would not disclose the reason, but yesterday announced they were investigating him for “suspected economic crimes.” His whereabouts are still unknown.

With the Arab world’s civil unrest in the periphery, many China critics believe the arrest of Ai Weiwei (pronounced EYE-Way-Way) is part of a recent crackdown on Chinese dissidents to stop any climate of protest from migrating into their borders. For nearly two-months, China has been arresting well known writers, human rights lawyers, and activists – making some completely vanish within their penal system. With well over a billion people under their governance, China’s leaders should fear demonstrations given their abysmal free speech and human rights record.

But the arrest of Ai Weiwei is markedly significant for one simple reason – he is one of their most prolific artists. Ai Weiwei was the “creative consultant” for the country’s iconic Beijing National Stadium – or what many refer to as China’s Olympic Bird’s Nest stadium. With the arrest of such a prominent figure, the country has sent the message to their people that no one, no matter how internationally heralded, is safe if they openly critique the government. And Ai Weiwei has done his share of criticizing. (more…)

Caveat emptor: The first-quarter economy is slowing and inflation is rising. A month ago, economists were optimistic about the potential for 4 percent growth. Now they are marking down their estimates toward 2.5 percent. Behind this, consumer expectations are falling while inflation fears are going up.

A recent CNBC All American Economic Survey revealed that 37 percent of respondents expect the economy to get worse in the next year. That’s up about 15 percentage points from the December poll. The key reasons? Worries over rising food and fuel costs. Respondents anticipate prices to climb 6.6 percent over the next year. That’s double the 3 percent inflation registered in the December survey.

Supporting the CNBC poll, the early March consumer sentiment index from the University of Michigan dropped sharply, with the reading for consumer expectations falling 14 points. Additionally, one-year inflation expectations have risen to 4.6 percent in March from 3.4 percent in February.

Of course, everyone has been badly shaken by the terrible disaster in Japan. For the U.S. economy, supply-chain disruptions will damage growth. Also, the civil war in Libya and the broad unrest across North Africa and the Middle East has fueled a mild oil-price shock, also subtracting from U.S. growth.

So if the economy ending in the March quarter slows to less than 3 percent, it would mark the fourth-straight sub-3-percent GDP reading. Despite the strength in the manufacturing sector and rising corporate profits, that reading would underscore the softness of this recovery cycle.

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