Posted By thestatedtruth.com on November 23, 2010

So, the talking heads are pressing up U.S.  growth prospects while the Fed gets more worried.  Hmm……

From The Wall Street Journal

Fed officials downgraded their assessment of the economy at a November meeting as they debated the benefits and costs of bond purchases, minutes showed. 

Fed officials downgraded their growth projection to between 3% and 3.6% next year, compared to the 3.5% to 4.2% estimate it made in June. Fed officials forecast 2.5% growth in 2010, lower than the June prediction of between 3% and 3.5%. Though Fed critics warn its bond-buying program could spur inflation, the Fed projected inflation would remain below its informal objective of 2% through the forecast period.

The downwardly revised projections indicate the Fed might keep interest rates low for several years and suggests it is likely to follow through on plans to buy $600 billion in Treasury securities in the months ahead. The Fed said it stands ready to buy more securities if the forecast doesn’t improve or deteriorates

Categories: Commentary, Economy, National News, Wall Street
Tags: fed rates, federal reserve