Fed cuts 2012 growth forecast, raises next 2 years
WASHINGTON (AP) -- The Federal Reserve has lowered its outlook for growth this year but is more optimistic about the next two years. The change likely reflects a series of both stimulus measures the Fed launched Thursday aimed at boosting the sluggish economy.
The Fed now expects growth to be no stronger than 2 percent this year, down from the 2.4 percent forecast in June. The Fed expects growth to accelerate next year as much as 3 percent, up from June's forecast of as much as 2.8 percent. For 2014, the Fed projected growth between 3 percent and 3.8 percent.
The Fed still thinks unemployment won't fall below 8 percent this year. The unemployment rate is currently at 8.1 percent. It says it could be as low as 7.6 percent next year, and down to 6.7 percent in 2014.
This site uses Facebook comments to make it easier for you to contribute. If you see a comment you would like to flag for spam or abuse, click the "x" in the upper right of it. By posting, you agree to our Terms of Use.