From Calculated Risk, here are the Fed’s economic projections for this year, made in April 2010, only two months ago:
Real GDP: 3.2-3.7% (actually GDP in first half is 3% and will be less in second half, now that stimulus is pretty much over)
Unemployment: 9.1-9.5% (average of first six months: 9.7%)
PCE: 1.2-1.5% (actually 0.7% and prices appear to be dropping)
To sum up: the Fed’s been wrong consistently on growth, unemployment and inflation.
Oh, and retail sales have fallen the past two months.
Hey, but that doesn’t mean the Fed won’t do anything (cue crickets chirping), or wait a minute, so long as inflation remains a non-existent threat and non-existent credibility remains the Fed’s only objective, yes it does.
Gorilla says: “Fighting inflation? Fighting unemployment? It’s time to fight the Fed before it screws us any further!”
Tags: Fed, US Economy