http://money.cnn.com/2012/04/25/news/economy/federal-reserve-policy/index.htm?iid=SF_E_River
This article discusses the Fed's predictions on economic recovery for the next year. The Fed notes that although there has been some recent improvement, it does not want to make any policy changes at the current time. The FOMC has revised unemployment rate forecasts to be between 7.8 and 8% by the end of the year. The Fed also believes growth will be between 2.4-2.9%. Although these figures are nowhere close to ideal, they represent consistent, moderate improvement in overall economic performance. The Fed believes this growth can be sustained, and hopefully will take a sharp upturn in the coming years.
This article discusses the Fed's predictions on economic recovery for the next year. The Fed notes that although there has been some recent improvement, it does not want to make any policy changes at the current time. The FOMC has revised unemployment rate forecasts to be between 7.8 and 8% by the end of the year. The Fed also believes growth will be between 2.4-2.9%. Although these figures are nowhere close to ideal, they represent consistent, moderate improvement in overall economic performance. The Fed believes this growth can be sustained, and hopefully will take a sharp upturn in the coming years.
1 comment:
The Feds decision to keep the interest rate at zero in a very weakened economy is good, but is only an attempt to kick the can down the road, prolonging the process does not change it. Debt as share of economy peaked during World War II at 127% of GDP in 1945. As of March 2012 debt held by the public was $10.85 trillion or 70% GDP, while intragovernmental debt was $4.74 trillion or 30% GDP. These two amount to a total of 100% US GDP. I am skeptical on the long-term sustainability of the Federal governments fiscal policies. I would be curious to see how things have changed by 2015.
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