(January 07, 2009)—A drop in consumer confidence along with weakened household balance sheets and the on-going credit crisis are making economic conditions even worse in 2009.

In minutes released from its December meeting, the Federal Reserve predicts the current recession will be longer and deeper than originally thought.

The Fed also predicted the nation’s gross domestic product will fall even further as unemployment numbers continue their increase well into 2010.

The Fed says business spending will likely decrease through the new year as retail sales continue their decline.