The US economy's growth will probably be "frustratingly slow", according to Fed Chairman Ben Bernanke, Fox News reports. The Fed now estimates that the US economy will grow from 1.6% to 1.7% for 2011 and 2.5% to 2.9% in 2012, which estimates are roughly a point below the Fed's estimates in June. Unemployment is expected by the Fed to be between 8.5% and 8.7% in 2012, down from the current rate of 9.1%. Here's a link to the Fox story: http://www.foxnews.com/politics/2011/11/02/bernanke-pace-economic-growth-to-be-frustratingly-slow/.
According to The Wall Street Journal, Bernanke also signaled that the Fed is ready to do more to help the economy, such as through the purchase of additional mortgage-backed securities to aid the weak housing market. Here's the link to the WSJ.com story (behind subscription firewall): http://online.wsj.com/article/SB10001424052970203804204577013900433130614.html?mod=WSJ_hp_LEFTWhatsNewsCollection
To me, this is all mixed news. Given the turbulence in Europe with the Greek sovereign crisis, Asia's slowing economy, and the lingering weakness in the US economy, it wouldn't take much to derail the slight US recovery. I'm hopeful that Europe is able to contain the Greek crisis, that Italy can address its economic issues, and that the US economy continues to grow. These would be nice holiday presents to us all.
According to The Wall Street Journal, Bernanke also signaled that the Fed is ready to do more to help the economy, such as through the purchase of additional mortgage-backed securities to aid the weak housing market. Here's the link to the WSJ.com story (behind subscription firewall): http://online.wsj.com/article/SB10001424052970203804204577013900433130614.html?mod=WSJ_hp_LEFTWhatsNewsCollection
To me, this is all mixed news. Given the turbulence in Europe with the Greek sovereign crisis, Asia's slowing economy, and the lingering weakness in the US economy, it wouldn't take much to derail the slight US recovery. I'm hopeful that Europe is able to contain the Greek crisis, that Italy can address its economic issues, and that the US economy continues to grow. These would be nice holiday presents to us all.
