The Most Significant Stat the Federal Reserve Revealed Today for Middle Class Americans
Economic growth for all of 2014 will be significantly lower than the central bank forecast just three months ago. Fed members projected 2014 gross domestic product to hit between 2.1% and 2.3%, which is a huge cut from their March forecast of 2.8% to 3%.
The cut is largely due to the unexpectedly cold weather that large swaths of the country experienced at the beginning of the year, and which economists blame in part for the negative one percent contraction that the U.S, economy endured in the first quarter.
"It still implies GDP growth will average roughly 3.0% at an (sic) annualised pace over the final three quarters of this year," Paul Ashworth, chief U.S. economist at Capital Economics, wrote Wednesday in a note to clients.While the Fed said it expects unemployment to dip lower by year-end, it suggested that the sluggish recovery Americans have experienced since hitting a bottom in 2009 likely isn't speeding up anytime soon. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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