The Federal Reserve today released its projections for GDP, unemployment and inflation for 2012 and 2013. GDP estimates were lowered for both years, 2012 reduced to 1.7% – 2.0% from 1.9% – 2.4%. Estimates for 2013 were reduced by 2%-3%. Unemployment estimates stayed relatively the same for 2012 at 8-8.2%, while 2013 estimates narrowed but stayed in the old range, now between 7.6%-7.9%.
After the report was released, Ben Bernanke, the Chairman of the Fed, held a press conference to discuss the quantitative easing announcement earlier today. Bernanke expressed concerns for those who hold interest-bearing assets, but then went on to say low interest rates support homes and businesses throughout the economy. With no specific target, it isn’t clear where the Fed will begin and end its economic tweaking, however, Bernanke explained that the purpose is for general improvement in the labor market by reductions in unemployment among other indicators.
Tomorrow’s economic events include the Consumer Price Index Report, Retail Sales Report, and an Industrial Production Report. The CPI is expected to gain about 0.2% to 0.9%. Retail sales are also expected to grow less than a one percent. Industrial production is projected to shrink.
Google Inc. stock was $3.81 away from its high hit last week. Google stayed steady most of the day but exploded upwards around 12:30 pm, and continued its way up to close $15.16 higher at $706.04. Some products consumers are looking forward to from Google are Google Fiber and Google Glass. Google Fiber is currently in Kansas City but is planning to expand into five more cities in Kansas soon. Google Glass, a light electronic device in which data is projected into the users field of view, is set to be released next year.
Alex Kalish has a master’s degree in economics from Suffolk University.
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