WASHINGTON (MNI) – The Federal Reserve’s Board members and Bank
presidents Wednesday published their latest economic projections on
which they based their latest decision and, as expected, put off
notable improvement further into the future.
The growth in inflation-adjusted gross domestic product now is seen
crossing the threshold to 3% in 2013 instead of next year.
The unemployment rate won’t get below 8.5% next year in the latest
set of forecasts instead of as low as 7.8% in their June outlook.
Inflation, as measured by personal consumption expenditures, is
higher this year, but just about the same after as previously projected
after that.
Core PCE inflation is moderately upgraded this year, and also
nearly the same from then on.
The biggest change was in the growth outlook, with GDP this year
seen no higher than 1.7% when in June the top was 2.9%, more than a
percentage point higher.
For next year real GDP is seen from 2.5% to 2.9%, reaching 3% to
3.5% in 2013. For 2014 the highest growth rate seen is 3.9%, the lowest
3.0%.
The unemployment rate this year of from 9.0% to 9.1% is followed
next year by a rate from 8.5% to 8.7%. In 2013, the rate descends to
7.8% to 8.2% and finally in 2014, gets as low as 6.8%, in the Fed’s
view.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MMUFE$,MGU$$$,MFU$$$]
