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Fed Lowers Gdp Forecast, Holds Policy Steady

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http://uk.reuters.com/article/2011/11/02/uk-usa-fed-idUKTRE7A16RV20111102

The Federal Reserve on Wednesday slashed its forecast for economic growth, raised projections for unemployment and suggested Europe's debt crisis posed big downside risks to the U.S. economy.

However, it took note of strengthening in the U.S. economy in the third quarter and held monetary policy steady.

While the U.S. central bank offered no direct hints it was considering fresh steps to help the economy in a post-meeting statement, one official pushed for action. In the end, the Fed mustered a 9-1 vote for a steady course.

At a mid-afternoon news conference, Fed Chairman Ben Bernanke offered a measured assessment of the strains facing the economy.

"While we still expect that economic activity and labour market conditions will improve gradually over time, the pace of progress is likely to be frustratingly slow," he said.

....

Officials now expect the world's largest economy to grow by a tepid 2.5 percent to 2.9 percent next year, down from the rosier 3.3 percent to 3.7 percent they were expecting in June.

They saw the unemployment rate going no lower than 8.5 percent to 8.7 percent by the end of 2012, up from the more sanguine 7.8 percent to 8.2 percent range envisioned in June.

Has the GDP figure for jobs growth in the US altered, didn't Bernanke say 3% growth was needed to create jobs? Although this figure for creating jobs is very fluid and will constantly change but I don't think the US economy has rebalanced to bring the jobs growth GDP figure down yet. Although you'll never really know until you have hindsight.

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http://uk.reuters.co...E7A16RV20111102

Has the GDP figure for jobs growth in the US altered, didn't Bernanke say 3% growth was needed to create jobs? Although this figure for creating jobs is very fluid and will constantly change but I don't think the US economy has rebalanced to bring the jobs growth GDP figure down yet. Although you'll never really know until you have hindsight.

I'm surprised he didn't come up with some goodies. Between MF and Europe the markets looked pretty shaky.

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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