11 July 2012 20:40 [Source: ICIS news]
WASHINGTON (ICIS)--Federal Reserve Board governors and economists on Wednesday lowered their outlook for ?xml:namespace>
In releasing the minutes of the Fed’s 20 June rate-setting committee meeting, the central bank said that its top officials and staff economists agreed to lower their expectations for US gross domestic product (GDP) growth for this year to somewhere between 1.9% and 2.4%.
In their April meeting, the Fed’s economic staff had forecast a slightly higher GDP growth rate of at least 2% for this year.
“In addition, most [staff economists] noted that the worsening situation in
In addition to lowering projected GDP growth for this year, the Fed governors and staff also reduced their estimate for 2013 GDP to a range of 2.2% to 2.8%, and for 2014 to 3% to 3.5%.
In normal economic times, economists say that the
Consequently, the Fed anticipates that the
The central bank officials also revised upward their estimate of
For 2013, the minutes project a consensus of 7.5% to 8% unemployment, not dropping to near 7% until the end of 2014.
What economists consider normal unemployment levels would be around or below 5%.
Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy
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