WASHINGTON (AP) — The Federal Reserve has sharply cut its forecast for U.S. growth this year, reflecting a shrinking economy last quarter caused mostly by harsh weather.
At the same time, the Fed has barely increased its estimate of inflation despite signs that consumer price increases are picking up. Its benign inflation outlook suggests that the Fed doesn’t feel rising pressure to raise short-term interest rates.
The Fed updated its economic forecasts Wednesday after a two-day policy meeting.
It expects growth to be just 2.1 percent to 2.3 percent this year, down from 2.8 percent to 3 percent in its last projections in March.
The crony bankers and investors of the .001 percent who are making tens of millions of dollars off QE Eternity don’t worry about huge hikes in the cost of food and fuel. That’s only a problem for the little people.
Something is very wrong when “capitalists” find the economic ruin of their nation a cause for rejoicing and new highs in the stock markets.