Federal Reserve analysts projected that the unemployment rate could stay near 8 percent through 2014, as the committee downgraded the economic forecast for 2013 and 2014.
The Federal Open Market Committee said today that the unemployment rate will range between 6 and 8 percent for the next two years. They indicated that 7 percent is the most likely unemployment rate.
When asked why “the forecast for 2013 and 2014, the growth forecast, is downgraded,” Federal Reserve Chairman Ben Bernanke said “I suspect that the fiscal issues may be part of that.”
He maintained, however, that “the 2013 numbers are stronger than the 2012 numbers and the 2014 numbers are stronger than the 2013 numbers” despite that downgrade.
