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الثلاثاء، 23 نوفمبر 2010

Today the Minutes of the Federal Open Market Committee (FOMC) has released the minutes of its meeting from November 2-3. The outlook remains mixed, but there were several points that indicate that the future is starting to look better.

Here a few quotes that show the economic outlook:

"In their discussion of the economic situation and outlook, meeting participants generally agreed that the incoming data indicated that output and employment were continuing to increase, but only slowly."

"Banking institutions reported signs of improving credit quality. Improvements in household financial conditions were contributing to better performance of consumer loans. "

The graphics below show how the GDP is expected to increase and the unemployment rate is expected to decrease.




[caption id="attachment_12704" align="aligncenter" width="600" caption="Unemployment Rate Projection. Source: www.federalreserve.gov"]Change in Real GDP Projection. Source: www.federalreserve.gov

There are factors that definitely need improvement, like for example the job situation. The unemployment rate is still at levels that are way too high.
Unemployment Rate Projection. Source: www.federalreserve.gov[/caption]

The participants of the FOMC meeting agreed that there will be a modest increase in the rate of recovery over the next few years:

"Participants continued to expect a modest pickup in the pace of the recovery over the next couple of years."

The labor market is expected to start to turn around in 2011:

"Participants expected that conditions in labor markets would improve gradually beginning next year."

The two quotes above were taken from the summary of Economic Projections, published by the Fed.

You can find the complete minutes of the FOMC meeting here, and the summary of  Summary of Economic Projections can be found here.
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