Replies to post #4103 on The Rising Influence of Rising Affluence

[DewDiligence]

US Fed lowers GDP forecast and vows to keep ST interest rates near zero:

http://online.wsj.com/article/SB10001424052970203806504577182941621926780.html

Federal Reserve officials Wednesday said they expect short-term interest rates to stay close to zero through late 2014, longer than previously indicated, as they signaled dissatisfaction with the recovery and confidence that inflation is slowing.

…Fed officials were a bit more pessimistic about economic growth in the years ahead compared with projections made in November, though they were marginally more upbeat on the jobs front. Gross domestic product is seen expanding between 2.2% and 2.7% this year, down from a previous forecast of 2.5% to 2.9%.

…Fed officials forecast inflation would remain below 2% through 2014—and made it clear that 2% is the rate it is targeting in the long run.