From WSJ: In every year of the economic recovery the Federal
Reserve has overestimated how fast the economy would grow. Many economists
believe it is doing so again. The Wall
Street Journal’s monthly survey of private-sector economists shows that
forecasters on average expect the economy to grow 2.3% this year and 2.8% next
year.
The Fed is more optimistic. Its latest growth projections,
made in March, average closer to 2.6% for 2013 and closer to 3.2% for 2014. At
the conclusion of its two-day policy meeting on Wednesday, the Fed will release
its updated projections of growth, inflation and unemployment. The evolution of these forecasts is a
critical issue. Fed officials are unlikely at this meeting to change their
$85-billion-per-month bond-buying program—launched to boost growth by pushing
down long-term interest rates and pushing up asset prices, and spurring
spending, hiring and investment….
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