FED: Economy in 2010 will be Better than Previously Forecast

[Clio the Leo]

Federal Reserve sees slightly better 2010 economy
By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) -- Federal Reserve officials have a slightly brighter view of the economy than they did at the start of the year.

Fed officials say in an updated forecast that they think the economy can grow between 3.2 percent and 3.7 percent this year. That's an upward revision from a growth range of 2.8 percent to 3.5 percent in their January forecast.

The Fed's latest forecast sees the unemployment rate, now at 9.9 percent, dipping to between 9.1 percent and 9.5 percent by year's end. In the January forecast, the Fed didn't think unemployment would dip below 9.5 percent this year. The Fed prepared the latest forecast for its late-April meeting.

The Fed predicts an inflation gauge tied to consumer spending - excluding volatile food and energy costs - will rise just 0.9 percent to 1.2 percent this year. In January, the officials forecast an increase in prices of 1.1 percent to 1.7 percent.

The Fed's updated outlook was prepared at its last meeting, April 27-28, and released Wednesday. It's roughly in line with an Associated Press survey of leading economists done about a month earlier. According to the AP's survey, the economy will grow 3 percent this year, and the unemployment rate will inch down to 9.3 percent by year's end.

http://hosted.ap.org/dynamic/stories/U/US_FED_FORECAST?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT

[Cant trust em]

1. Famous last words.

I'm glad that I'm not an economic forecaster.

[Vincardog]

2. My economy will not improve until I get a job that pays a LIVING WAGE

[girl gone mad]

3. Right, and subprime was contained.

Memo to the Fed:

Sometimes it's better to keep quiet.

[Donnachaidh]

4. and we now trust the FED enough to believe this bollocks load?

bwahahahahahahahah!!!


oh gimmee prop - I said gimmee prop-a -- I said gimmee that old style PROPAGANDA That I can believe in!


:silly: :rofl:

[The Northerner]

5. +1

[DrToast]

6. This place is so depressing sometimes.

I've never seen so many people pissed about good news.

[FrenchieCat]

7. That's why they are here.....to make sure you stay depressed.....

cause when you are happy and hopeful,
then they are even more depressed.

[Tarheel_Dem]

10. "That's why they are here.....to make sure you stay depressed....."

Truer words were never spoken.:thumbsup: And it's all well coordinated.

[Clio the Leo]

8. They were probably the same ones denouncing the claims that we'd have job creation by spring...

.... and they were laughable then too.

[Cali_Democrat]

9. I hope the Fed is right...unfortunately events in Europe and China may hurt US growth

The Chinese are trying to slow down their economy to prevent a crash and some European countries can barely make interest payments on their government bonds.

The LIBOR rate has spiked recently. This essentially means that banks are wary of lending to each other because they don't know what's on each others balance sheets. Many banks are essentially holding junk bonds issued by countries like Greece and Portugal.

There are just so many factors that can hurt this economy right now.

I'm cautiously optimistic.