Contact Us

Federal Reserve Says Economic Recovery "Frustratingly Slow" [AUDIO]

Ben Bernanke
Mark Wilson, Getty Images

Expansion, but “frustratingly slow expansion” in the next two years.  So says the Federal Reserve in deciding to put off any new action to spur the economy.

Fed Chairman Ben Bernanke ackowledged Wednesday economic growth will be slow…1.7 percent for the rest of this year and 2.5 to 2.9 percent in 2012. Both forecasts are roughly a full percentage point lower than the Fed’s projections from June.

The unemployment rate has been stuck near 9 percent for more than two years. The Fed doesn’t see that changing this year. It predicts it will fall between 8.5 percent and 8.7 percent next year. In June, the Fed had predicted unemployment would drop next year to as low as 7.8 percent.

The new forecast takes into account the substantial slowdown in growth that occurred earlier this year.

On inflation, the Fed expects consumer prices will increase no more than 2.9 percent this year — slightly worse than June’s forecast. That’s largely because of a spike in food and gas prices that occurred earlier this year. The Fed noted the improved economic picture in its policy statement issued after its two-day meeting.

As a result, it said it would hold off on any new actions because stronger growth is giving it time to gauge the impact of steps it’s already taken.

Rutgers/Camden economist Mitchell Koza says the Federal Reserve is basically saying they think the economy is moving in the right direction, and at this point they do not believe that greater intervention or change will have a signifigant impact.

Koza says one of the factors influencing the fed is the financial problems in Greece and Europe. He says the U-S economy is not immune to those problems because we are part of a global economy that has a high degree of interdependency.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of WOBM-AM

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for Beachcombers quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive Insiders contests, events, coupons, presales, and much more delivered to you for FREE.