Fed Projects Higher Employment and GDP Growth for 2013

The Federal Reserve released its latest economic projections (link opens a PDF) today, and things are looking better than before.

After the last round of estimates were released in September, hinting at lower GDP growth for 2013, these latest projections point to a more positive outlook. From its previous range of 2% to 2.3%, the Fed has tightened its estimate to 2.2% to 2.3%. Growth should continue pick up over the next couple years, with 2014 GDP growth estimated between 2.8% and 3.2%, and 2015 growth between 3% and 3.4%.

Source: Federal Reserve. 

The news is good for employment as well. From previous guidance between 7.1% and 7.3%, the 2013 unemployment rate is now generally expected to clock in between 7% and 7.1%. Projections continue to push rates down further in following years, dropping as low as 6.3% in 2014, 5.8% in 2015, and 5.3% in 2016.

Source: Federal Reserve. 

Inflation, generally considered to be the least worrisome aspect of the economic recovery, should continue to steadily rise to long-run levels. The 2013 general estimate range puts inflation between 0.9% and 1%, with a consistent rise to somewhere between 1.7% and 2% for 2016.

Source: Federal Reserve. 

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2770391, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:43:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes