Fed Downgrades Economic Forecast for This Year (warns of long road to recovery)

[sabra]

Source: ABC News/AP

Fed downgrades economic forecast for this year, warns of long road to recovery


The Federal Reserve on Wednesday sharply downgraded its projections for the country's economic performance this year, predicting the economy will actually shrink and unemployment will rise higher.

Under the new projections, the unemployment rate will rise to between 8.5 and 8.8 percent this year. The old forecasts, issued in mid-November, predicted the jobless rate would rise to between 7.1 and 7.6 percent.

The Fed also believes the economy will contract this year between 0.5 and 1.3 percent. The old forecast said the economy could shrink by 0.2 percent or expand by 1.1 percent.

The last time the economy registered a contraction for a full year was in 1991, by 0.2 percent. If the Fed's new predictions prove correct, it would mark the weakest showing since a 1.9 percent drop in 1982, when the country had suffered through a severe recession.

Read more: http://abcnews.go.com/Business/wireStory?id=6905828

[snappyturtle]

1. You mention 1982 when the country had suffered a severe recession.

I was thirty five in 1982 and hardly remember it. I don't think it's anything like whatever it is we're presently going through. :shrug:

[Earth_First]

2. So FINALLY they see it coming?

Nothing could have been done to avert this, but they can tell us exactly how bad it's going to be.

:eyes:

[liberal N proud]

3. 1982

I had less than $700 reportable income in 1982. Saw it on my Social Security statement that came a couple of weeks back.

It was the year I graduated college, there were no jobs to be had. I sent out hundreds of letters to companies all across the country looking for work. All had to be typed (no computers). I received a handful of sorry letters, the rest just put me on ignore.

The only reason I made it through was a land lady who was reasonable, I took care of her place including her dog when she traveled (every weekend) to help cover the rent. I did odd jobs for cash and had enough friends who fed me.

I thought there was no end to that hell and I hope that I never have to go back to that.

Today, my oldest is set to graduate college, I see the same nightmare all over again. Only this time, there is no grace period for student loans. We are already helping her with the loans.

Un-fucking believable how we try to get up and they knock us right back down again.

[roamer65]

6. I have similar memories of 1982.

Somehow our family got through it. I hope this one is not a repeat of 1982 for us.

[EVDebs]

4. The Long and Winding Road....tha-aat leads...to...your...door....nt

[xchrom]

5. recommend