- Feb 10, 2005
- Reaction score
- Montgomery, Al
Federal Reserve: Unemployment to stay high
CBSnews.com | June 20, 2012 | Anthony Mason
(CBS News) NEW YORK - We have been struggling through the weakest economic recovery the U.S. has seen. On Wednesday, the Federal Reserve projected more sluggish growth and high unemployment ahead. The Fed said its last forecast back in April was too optimistic.
The Fed's projection has changed for next year. It had expected growth in the economy to be as little as 2.7 percent. But on Wednesday, the Fed revised that down to as little 2.2 percent growth. In April, the Fed had also projected unemployment might stay as high as 7.7 percent-- it revised that up to 8.0 Wednesday.
The chairman of the Federal Reserve, Ben Bernanke, said he will try -- once again -- to jolt the economy out of neutral. The Fed moved to push interest rates already at record lows even lower. Bernanke wants to reduce borrowing costs for businesses and consumers to keep the economy from stalling again.
"Underlying all this, of course, is the fact that the outlook has changed," Bernanke said. "Like many other forecasters, the Federal Reserve was too optimistic early in the recovery."