The Fed has just taken one small step to acknowledging reality... and Zero Hedge's keyword of 2011: stagflation. The FOMC released its revised 2011-2013 economic forecast, which saw GDP getting slashed, while hiking its inflation and unemployment projections. Specifically, 2011 GDP was lowered from 3.2% to 2.8% even as it raised its average unemployment forecast from 8.6% to 8.
Earlier, the Fed policy decision was released, which indicated QE2 would end in June. The Fed also admitted that inflation was rising. GDP Projection for 2011: 3.1% to 3.3% range, down from 3.4 to 3.9% before. Unemployment projectio... Read Post
Deutsche Bank has come out and called the latest Federal Reserve forecast for the U.S. economy as too conservative. They believe GDP will be higher, unemployment lower, and inflation higher than what the Fed expects this year. Deuts... Read Post