9°c A few clouds
19°c Sunny
The Canadian Press - ONLINE EDITION
Fed forecasts modest US growth, high unemployment into 2015, a sign rates will remain low
WASHINGTON - The Federal Reserve foresees unemployment remaining high into 2015, suggesting it will keep short-term interest rates near record lows at least until then.
In its latest economic forecasts released Wednesday, the Fed predicts that the unemployment rate will stay above 6.5 per cent for about two more years. Fed policymakers also expect the economy to grow modestly this year and next despite economic gains so far in 2013.
The Fed's updated forecasts are nearly identical to projections it made in December. The Fed has said it plans to keep its benchmark rate near zero as long as unemployment exceeds 6.5 per cent and the inflation outlook is tame.
The policymakers expect the economy to grow as little as 2.3 per cent this year — not enough to quickly drive down unemployment — or as high as 2.8 per cent. In 2014, growth could range from 2.9 per cent to 3.4 per cent in 2014, they predict.
The Fed has slightly upgraded its outlook for unemployment. It now sees the rate falling to between 7.3 per cent and 7.5 per cent by the end of this year. That's down from a previous range of 7.4 per cent to 7.7 per cent.
The rate fell to 7.7 per cent in February, the lowest in four years.
By the end of 2014, the Fed expects the rate to fall between 6.7 per cent and 7 per cent. That's a narrower range than in December, when it forecast a range of 6.8 per cent to 7.3 per cent.
More Business
- Back to Top
- Return to Business
More Business
(1 of 50 articles for this week)
Asian stock markets rise after Fed official says US should maintain easy monetary policy
1:25 AM 0
Poll
Most Popular Business
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Creative industries can fuel a city's economic engine
- Manitoba Movers
- A look at how the struggling French economy compares to Germany's and Britain's
- German software firm SAP to recruit hundreds of people with autism for specialist positions
- Bridging the gap
- Ex-Ford Motors executives charged in tortures of union workers during Argentina's dictatorship
- North American markets climb on gold, energy gains and positive Fed speeches
- A closer look at the 3 new game consoles from Microsoft, Nintendo and Sony
- With Apple CEO's Senate turn, lawmakers see possible spur to action on fixing US tax code
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- 2 men arrested in killing of Las Vegas teen who refused to give up his iPad
- Driving downtown development
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Creative industries can fuel a city's economic engine
- Bridging the gap
- Transcona transformation
- Apple uses companies outside US to avoid paying billions in taxes, Senate inquiry finds
- Chinese court sentences entrepreneur to death in latest crackdown on underground banking
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Raising the rent is a good sign
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Ex-'Pegger seeks to grow local businesses
- German software firm SAP to recruit hundreds of people with autism for specialist positions
- Bridging the gap
- Creative industries can fuel a city's economic engine
- There are lots of I's in 'team'
- Tougher food-safety rules in the works: Agriculture Minister Gerry Ritz
- Boreal Forest conservation negotiations end in failure after three years
- Portage, Winnipeg law firms join forces
- Experts urge buyers to take precautions when buying used cars and trucks
- Microsoft reveals Xbox One as all-in-1 entertainment console, last of 3 major systems unveiled
- Ex-'Pegger seeks to grow local businesses
- Diversification spurs Exchange Income's growth
- Bridging the gap
- Driving downtown development
- Late deal in workplace sex-harassment case
- Transcona transformation
- More than a new boss
- There are lots of I's in 'team'
- Viterra plans $20 million capacity upgrade at four Saskatchewan grain terminals
- German software firm SAP to recruit hundreds of people with autism for specialist positions
- Transcona transformation
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Winnipeg Boeing plant set to expand
- Local boy leads Great-West
- Ex-'Pegger seeks to grow local businesses
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.