Posted on 11/23/2010 5:53:50 PM PST by bruinbirdman
America's economic recovery will be weaker than feared next year and do little to bring down unemployment until at least 2013, according to new forecasts from the Federal Reserve.
The world's biggest economy will grow between 3pc and 3.6pc, less than the Fed's June forecast of 3.5pc to 4.2pc. In turn, unemployment, currently 9.6pc, will only edge lower to between 8.9pc and 9.1pc next year. In June, the central bank had forecast it would dip below 9pc in 2011.
The new forecasts were revealed in the minutes of the meeting of the Fed's Open Market Committee, when it decided to inject a further $600bn (£509bn) into the economy. The decision proved controversial at home and abroad, where it was criticised by some as a reckless way to lift exports and inflation by weakening the dollar. The minutes acknowledged that the latest forecasts were based on a lower dollar, as well as higher share prices.
The sluggishness of the recovery has already seen the Republicans wrest control of the House of Representatives from the Democrats and spark a fierce debate over how to restore the country's economic health.
While most acknowledge a repeat of the last housing-led boom is neither possible nor desirable with unemployment still close to 10pc, there's little patience for the change needed to reshape the economy away from domestic consumption towards exports.
Before the release of the Fed's minutes, the latest estimate of how the economy performed in the third quarter offered some cause for hope. Gross domestic product grew at an annual rate of 2.5pc, according to the Commerce Department, higher than the first estimate of 2pc and up from the 1.7pc pace of the second quarter.
Consumer spending, which is still the economy's key driver, climbed at an annual pace of 2.8pc, its strongest since
(Excerpt) Read more at telegraph.co.uk ...
What ever happened to “The Summer of Recovery”?
Obama said the nation’s economy is rebounding. He wouldn’t lie. Would he?
“...weaker than feared next year and do little to bring down unemployment until at least 2013, according to new forecasts from the Federal Reserve.”
Only after El Bozo leaves office, dare we hope for a real recovery. Unfortunately, by then we will be totally bankrupt.
Weird. Barry was out today telling his union fairies that America was “rockin’ on!”
Were his lips moving?
LLS
“Consumer spending, which is still the economy’s key driver, climbed at an annual pace of 2.8pc, its strongest since...”
food price inflation.
Oh, wait a minute, none of that is true ...
But look tomorrow for the mainstream media to use the word “unexpectedly” in characterizing this growth forecast.
Who could expect that a proto-Marxist either deliberately or incompetently spreading fear, uncertainty and doubt just MIGHT stifle economic growth? Who knew?
Oh crap. They were. Does that mean what I think it means?
Recovery? What recovery?
“Recovery” is the new euphemism for “depression.”
folk the Fed. audit the Fed. End the Fed. Arrest the idiots that own the Fed.
When Obama says "recovery" he means re-bury.
“folk the Fed. audit the Fed. End the Fed. Arrest the idiots that own the Fed”.
Exactly right. They are running the biggest scam in the history of the planet.
“The Creature From Jekyll Island” ‘splanes in all.
You forgot — “unexpected”
I’m afraid so.
LLS
I just got done reading that China and Russia quit the dollar, too. Does this mean the stock market will fall again tomorrow? Just wondering.
http://www.freerepublic.com/focus/f-news/2632229/posts
The Full Employment and Balanced Growth Act of 1978 “requires the Chairman of the Federal Reserve to connect the monetary policy with the Presidential economic policy”.
Bernanke’s QE2 is an extension of Obama’s Keynesian (Krugman-like) economic policy. Bernanke met with Obama shortly before QE2 was implemented.
In spite of the Nov. 2 mandate to stop spending, Obama backs the Fed in a mega spending spree that could very well destroy our economy.
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