Fed Ups Its GDP Forecast For 2019 Slightly To 2.2%

CNBC ^ | 09/18/19 | Yun Li

[Enlightened1]

• The Fed now expects GDP to grow at a 2.2% pace for 2019, versus the 2.1% forecast in June.
• The unemployment rate is expected to rise to 3.7% this year, slightly above the 3.6% projection in June.

The Federal Reserve dialed up its growth expectations slightly while keeping its inflation projection unchanged, according to its Summary of Economic Projections.

Source: Federal Reserve

The central bank now expects GDP to grow at a 2.2% pace for 2019, versus the 2.1% forecast in June. The unemployment rate is expected to rise to 3.7% this year, slightly above the 3.6% projection in June.

The GDP outlook for 2020 stayed unchanged at 2%.

The Fed still expects headline inflation to grow at 1.5% this year, while its expectations for core inflation, which excludes volatile food and energy prices, stayed at 1.8%.

The Federal Open Market Committee approved a much-anticipated quarter-point interest rate cut on Wednesday, taking down its benchmark overnight lending rate to a target range of 1.75% to 2%. The Fed sees no further rate cuts in 2019 and 2020, but policymakers are divided in its rate outlook.

The economy grew at a 2.0% annualized rate in the second quarter, slower than a 3.1% growth rate in the January-March quarter. The unemployment rate stayed at a historic low of 3.7% in August.

[eyeamok]

The Fed still expects headline inflation to grow at 1.5% this year, while its expectations for core inflation, which excludes volatile food and energy prices, stayed at 1.8%.

In other words:

We are only going to STEAL 2% of the VALUE of your Money instead of the standard 5% that we normally STEAL from you

[Paladin2]

I plan to be still retired, but spending like mad on Personal Infrastructure and Capital Goods.

[Enlightened1]

Bingo!

[Drago]

Inflation is running 5%-6% where I live. The “official” inflation #’s are pretty bogus...they exclude plenty of items Americans buy every week. Better #’s here:

http://www.shadowstats.com/alternate_data/inflation-charts

So they are stealing more like 5% from you (less the measly interest on your savings of 1.8% or so). Forces people into equities, making for a nice big bubble. The re-fi bubble is coming back too...plenty of radio spots for “Do a cash-out re-fi now!!”

[Enlightened1]

I’ve noticed that the price of food certainly has gone up.

Check this inflation calculator out.

http://www.in2013dollars.com/1999-dollars-in-2018?amount=40000

[eyeamok]

I agree, it’s coming. I have heard ads for Liar Loans for 2 years now on the radio.

I bought my last house for about 20 cents on the dollar after the banking system engineered crash and will buy another the next crash.

[Steely Tom]

I’m certain that if it had fallen one-tenth of a point, from 2.1 to 2.0, the headline would still include the the word “slightly.”

[eyeamok]

Aint Central Banking Great, god I wish more Americans would wake up and learn to COUNT!!

Either way GET OUT OF DEBT as Soon as possible, stop feeding the beast. If Citizens don’t borrow the FED has to step and INFLATE AWAY to avoid a crash in the banking system.

[DesertRhino]

The Fed has done it’s work well, slowing down Trump’s over-success.

[rfp1234]

Hey Fed,

I’ve upped my standards.
Up yours.

[Enlightened1]

Right on right on!

[bigbob]

We’d have >3% growth if not for the bastards running the Fed

[Enlightened1]

I know...

Freepers need to get into Assets to protect their money.

[eyeamok]

I’ve noticed that the price of food certainly has gone up.

and the Quantity has been cut 20%, what used to be a gallon of ice cream is now 48 ounces??? A can of Tuna is now 4 ounces instead of 6,....

[Jumper]

Ever notice that interest rate and inflation rate are so similar as to make COLA increase.es similar, but that your social security or govt retirement is only paid. On 1/3 the income you have when breaking even with pay raises.

[A Formerly Proud Canadian]

Oh, no! Growth DECREASING and unemployment INCREASING! TRUMP’S FAULT!
-MSM headline

[PGalt]

Thanks for the links; posts. BUMP!

[Paul R.]

Agreed.

Moreover, additionally, if states like NY, CA, IL, etc., were run with some semblance of competence, we could be at 5% GDP. Given the debt out there, not to mention keeping ahead of China, we NEED to be at 5%.