Inquiring minds are remembering what President Obama and Vice-President Biden were saying before the election just past was that the economy “was going in the right direction.” Well, that too looks like a lie…oh, excuse me…a misstatement.
The Fed now says the economy is not growing like they thought:
Federal Reserve officials have become more pessimistic in their economic outlook through next year and have lowered their forecast for growth.
The economy will grow only 2.4 percent to 2.5 percent this year, Fed officials said Tuesday in an updated forecast. That’s down sharply from a previous projection of 3 percent to 3.5 percent. Next year, the economy will expand by 3 percent to 3.6 percent, the Fed said, also much lower than its June forecast.
Fed officials project that unemployment won’t change much this year, averaging between 9.5 percent and 9.7 percent. The current unemployment rate is 9.6 percent. Progress in reducing unemployment has been “disappointingly slow,” the central bank said, according to the minutes of its Nov. 2-3 meeting.
This should not come as any surprise. Why else would The Fed decide to buy back $600 billion in Treasury bonds over the next eight months?
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