Fed forecasts US slowdown

first_img PROSPECTS of an American recovery are less bright than previously thought, according to minutes of the most recent Federal Reserve (Fed) meeting, released last night.The Fed expects unemployment for next year of around 8.9–9.1 per cent, up from its last prediction of 8.3–8.7 per cent.Furthermore, its growth forecasts for 2011 fell to 3–3.6 per cent, down from 3.6–4.5 per cent. Despite low inflation, the Fed expects Core Personal Expenditure (PCE) of 1–1.1 per cent this year. The last forecast was for 0.8—1 per cent. All but one dissenting member supported monetary policies of quantitative easing (QE) combined with interest rates kept as low as possible.Yet the minutes reveal intense discussions over the second phase of quantitative easing (QE2).Several members thought further easing “could cause an undesirably large increase in inflation”.QE could provoke “unwanted downward pressure on the dollar”, said some members, and might “have only a limited effect on the pace of the recovery” and further monetary stimulus “would be warranted only if the outlook worsened and the odds of deflation increased materially,” the minutes say. KCS-content Show Comments ▼ Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayMoneyPailShe Was Famous, Now She Works In {State}MoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”Wanderoam Tags: NULLcenter_img whatsapp Fed forecasts US slowdown whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Tuesday 23 November 2010 9:13 pmlast_img read more