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Fed Sees Slight Economic Growth

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  • Description

    FBN’s Peter Barnes on the Federal Reserve’s economic outlook.

  • Duration 2:48
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This transcript is automatically generated

We have breaking news from that end here Barnes is -- -- Peter.

-- crazy.

Economic forecast the -- slightly higher economic growth for 2012 slightly lower unemployment below 8% for the monthly average for the year and slightly higher inflation than its last forecast in January let's run through.

The charge now let's start with unemployment.

42012.

In January the Fed have been projecting about eight point 3844%.

Unemployment the average of its so called central tendency but.

It hit eight at eight point 2% back last month in March -- it now sees unemployment at about seven point 9% for 2012.

It will fall and this latest forecast to seven and a half percent -- 2013 and go to that declined to about 7% in 2014.

Now let's go to GDP for for -- this year the Fed is now forecasting about two point 7%.

Growth for the year that's up from two and a half percent.

That forecast back in January for 2013.

-- -- that GDP the economy growing.

By two point 9% or so and in 2014 getting up to 3.4 percent growth for inflation.

It now sees it coming in and around 2% -- 2012 that is the target rate.

That the Fed has formally set for inflation in January it was looking at just one point 6%.

Inflation and and fed has been talking about higher higher oil and gas prices.

Affecting its outlook.

It -- one point 8% on him inflation -- 2013.

At about the same.

For 2014 now we're gonna take a look at this new forecasting to tool that the Fed has started to release them back in January this is the overview.

Of the seventeen FOMC participants on the appropriate timing.

A policy firming and what this change in the outlook that you would expect to see a slight shift towards slightly faster policy tightening.

And we are seeing that in this in this new tool.

In 2014 there are now seven FOMC members who want to start tightening.

In point -- that's the -- the effects that is gonna keep what interest rates low through and in January that we're just five.

Who wanted to tighten it by when he fourteen.

The numbers for 24 -- -- point thirteen remain the same at three each in this new tool 12015.

Tightening unchanged if for no change there we had seen some.

Some out liars who wanted to start tightening in point sixteen some real dobbs they're they're not they're gone -- they don't wanna tighten sooner.

Now Ashley -- -- -- -- thank you very much interest and perhaps a perhaps a sign of bringing those interest rate rises in a little close -- have to wait and see how -- this.

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