September 22, 2016

THE NEW NORMAL ANEMIA: Fed Trims Interest-Rate, Growth Forecasts.

Lost in the “good news” yesterday that the Fed thinks the economy might finally be strong enough — later this year, of course, after a few delays — to sustain a recovery amidst blustery headwinds of raising the prime interest rate all the way to 0.5%, was this sobering assessment:

In forecasts released as part of the central bank’s interest-rate setting Federal Open Market Committee, officials cut their growth forecast for this year to 1.8%, from 2.0% in June, and held steady their view for next year at 2.0%. Notably, they lowered their long-run view on the economy’s growth rate to 1.8% from 2%.

Bad luck, I suppose.

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