Federal Reserve sees the jobless rate at between 7.8 percent and 8 percent at end of year. I see no reasons to fear a Depression or Recession. Unemployment is forecast at 7.3 percent to 7.7 percent next year and 6.7 percent to 7.4 percent in 2014.

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You could reduce unemployment at a faster speed, but it would be highly irresponsibly unleashing inflation. Long term the unemployment may fall under 6%.

According to the Federal Reserve Board or FED ( that voted 9 to 1 in the statement and projections ) the economy is forecast to expand at 2.4 percent to 2.9 percent in 2012, by 2.7 percent to 3.1 percent in 2013, and 3.1 percent to 3.6 percent in 2014

Bloomberg
Bernanke Says ‘Prepared to Do More’ After Policy Unchanged
By Caroline Salas Gage and Joshua Zumbrun
April 25, 2012


Bernanke Says ‘Prepared to Do More’ After Policy Unchanged


Some excerpts :

In the U.S., consumer spending is starting to power growth as business investment cools. A report today showed orders for durable goods fell in March by the most in three years, indicating manufacturing will contribute less to growth this year.

Retail Sales

Retail sales rose more than forecast in March as Americans snapped up everything from cars and furniture to clothes and electronics. The 0.8 percent gain was almost three times as large as projected and followed a 1 percent advance in February, Commerce Department figures showed April 16.

An April 27 government report may show that gross domestic product rose at a 2.5 percent annual rate in the first quarter, according to the median forecast in a Bloomberg News survey of economists, driven by the biggest increase in household demand in a year.

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