Unemployment And Economics: The Predictions For 2012 And 2013
By Stephanie Robins on November 24, 2010, 6:58 am Posted in Finance News
The Federal Reserve Bank (Fed) recently announced predictions for the upcoming year involving the economy. These predictions are not as good as the predictions they had made earlier in 2010. There was a little more hope after numbers climbed in the first quarter of 2010; however, by the third quarter of 2010 numbers for economic growth have tapered off. Now the Fed has put a more realistic outlook on economic growth for 2011. The Fed has plans to sell some long-term bonds in hopes of putting around $600 billion more into the economy.
The Fed Says Full Recovery Will Take Several More Years
Since the recession began in late 2007 record high unemployment rates have been plaguing the United States. In recent years such as the first quarter of 2010 the unemployment rate has started to taper off slightly. This did give the Fed a little hope for a full recovery to happen very soon; however, as the year progressed the current outlook appears that it will take several more years perhaps even until 2013.
The Fed Predicts Prices On Consumer Goods Will Continue To Rise
In order to regain profits many merchants have begun to raise prices on goods and services offered to consumers. Many consumers do not notice much of a price hike. The price hike is currently around 2% higher than in the past. Today the consumer is being charged slightly more for the same goods and services that they received in past. The Fed does not expect the simple price hike to raise profits with merchants so significantly that merchants will again be able to open up employment. However unemployment is predicted to still be around 7 1/2% by the end of 2013.
Related posts:
- Black Friday: Finally Economy Shows Signs Of Promise
- Netflix Makes Shift From DVD Rentals And Announces New Pricing Options
- Debt: Consumers Are Getting Out The Old Fashioned Way
- Black Friday: Indicators Are Looking Good For Real Black Friday
- Recession Recovery: Bankruptcies And Reposessions At All Time Highs
The Fed’s power is usually overrated. The three best way to solve this country’s economic woes are 1) Do not extend income tax cuts, but give 30-40% tax deductions for new hires and retention 2) cut spending, especially on defense, subsidies to oil 3) Let the states prosecute employers of illegal aliens
credit will start flowing if Bernanke starts to tighten, otherwise only the corporate exports will bennefit and 89% of the US economy will be plagued