As expected, the Fed has reduced its growth and unemployment forecasts.
Here are the new projections, along with the old projections.
Here’s what the Fed sees for 2012, vs. its previous estimate:
- GDP: Current estimate: 1.9-2.4%, Previous estimate: 2.4-2.9%
- UNEMPLOYMENT RATE: Current estimate: 8.0-8.2%, Previous estimate: 7.8-8.0%
- PCEINFLATION: Current estimate 1.2-1.7%, Previous estimate: 1.9-2.0%.
More specific to come in a moment…
At 2:00 PM ET, the Fed will update its economic forecast.
We’ll have the number here LIVE.
Already today the Fed has announced an extension to Operation Twist (buying longer dated bonds and selling shorter dated ones). Click here for an analysis of what that means.