Full and original article posted on Telegram & Gazette
Reserves about role of the Fed
Americans have grown accustomed to pessimistic economic forecasts, and one delivered by the head of the Federal Reserve Bank of Boston last week was sobering. Yet, Eric S. Rosengren’s outlook may have been too optimistic.
Speaking to the annual meeting of the Worcester Regional Research Bureau, Mr. Rosengren said he sees U.S. economic growth in the year ahead of between 2 percent and 2.5 percent, while unemployment will remain stuck near 8.1 percent. Those projections, he cautioned, were contingent on “nothing untoward” occurring in Europe, and the U.S. avoiding a year-end “fiscal cliff” that could come with the expiration of unemployment benefits, increased taxes, and automatic spending cuts.
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