Obama’s economy: Fed predicts high unemployment through 2015

by Peter Grady –

 

The Federal Reserve has said it is expecting unemployment levels to remain high until at least late 2015, despite its plans to spend billions of dollars a month to keep interest rates low.

 

Following its final meeting for the year, the Fed announced it would only consider interest rate hikes when the unemployment rate falls below 6.5 percent.

 

In its economic forecast, the Fed said that while it is expecting economic growth to improve next year, it will not exceed 3 percent. In 2014 the central bank predicts growth could rise to 3.5 percent and 3.7 percent in 2015.

 

While Michelle Obama says America is in the middle of a “roaring recovery,” the Fed said it expects unemployment to remain at or above 7.4 percent through 2013.

 

In an attempt to drive unemployment down the Fed announced it will be spending $85 billion a month to ensure interest rates remain low in order to encourage Americans to engage in more borrowing and spending, which they say drives economic growth.

 

November’s unemployment rate fell to 7.7 percent, due in large part to the number of Americans who have given up looking for work. The government only counts a person as being unemployed if they are receiving benefits and are actively searching for work.


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  • Joe Casale says:

    Peter, I noticed you mentioned a quote from Michelle Obama in your piece.

    My question is, Why?

    Your piece is about the Federal Reserve, so with that said, when did the “First Lady” start making policy and why would you even mention her opinion?

    Her name doesn’t belong in any policy making discussion.

  • mrspock says:

    Michelle’s statement shows how the administration looks at the state of the American economy. While it is true she may not have an official title other than first lady, is anyone naive enough to believe that she and Obama do not share similar views. Furthermore the idea that she has no input in making administration policy is laughable.

    What the reporter has done is illustrate the huge disconnect between the Obama’s and the situation in the real world. Of course, this is to be expected from a man who was only a community organizer and never had to have a real job.

    The left hates it when their own words are brought to the light and used against them.

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