Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Fed hikes 2011 inflation view, cuts GDP outlook

Fed hikes 2011 inflation view, cuts GDP outlook (by Steve Goldstein)

WASHINGTON (MarketWatch) -- The Federal Reserve hiked its forecast for inflation and cut its economic growth view, though the central bank's board members and presidents have become more optimistic on the jobless rate. The Fed now sees the U.S. economy growing between 3.1% and 3.3% this year, down from a prior projection of 3.4% to 3.9% but still above Wall Street economist views around 2.9%. On inflation, they now see the price index for personal consumption expenditure growing between 2.1% and 2.8% this year, compared to the view in January of 1.3% to 1.7% growth. Some but not much of the PCE increase has filtered into core inflation, which excludes food and energy prices, which is now seen growing between 1.3% and 1.6%, vs. an earlier view of 1% to 1.3%. The unemployment rate however is now seen falling to a range of 8.4% and 8.7%, against an earlier estimate of 8.8% to 9%. The 2012 estimates aren't changed that much, though core PCE inflation is now seen ranging between 1.3% and 1.8%, up from 1% to 1.5%. The U.S. economy is seen growing between 3.5% and 4.2% in 2012 and between 3.5% and 4.3% in 2013.

Messages In This Thread

Fed hikes 2011 inflation view, cuts GDP outlook