Bernanke Still Sees Growth Pickup in 2012
NEW YORK ( TheStreet) -- Federal Reserve Chairman Ben Bernanke stuck to his view that economic growth will pick up going into 2012, even as the central bank took down its projections of just how much growth can be expected over the next two years.
The Fed now sees an increase in gross domestic product growth of 2.7% to 2.9% for 2011 vs. an April forecast for growth of between 3.1% and 3.3%.
Expectations for 2012 GDP growth were also cut, to a range of 3.3% to 3.7% from a previous range of 3.5% to 4.2%. Additionally, the central bank said it's anticipating higher core inflation in 2011, raising its expectations to growth of 1.5% to 1.8%, from 1.3% to 1.6%, previously.
Employment, meanwhile, isn't forecast to improve as much as the Fed had thought in April. Unemployment in 2011 is now expected to come in between 8.6% and 8.9%, compared with its prior forecast for unemployment of between 8.4% and 8.7%.In his second press conference following the
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV