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When is a Recession not a Recession?

By Brian | July 24, 2008 | Share on Facebook

This from last week’s Wall Street Journal:

Federal Reserve officials marked up their outlook for inflation and economic growth in their latest projections. But their estimates suggest little expectation that underlying inflation trends will deteriorate significantly through 2010.

At the June policy meeting, officials projected that the rate of economic growth by the end of the year would be between 1% and 1.6%, up from 0.3% to 1.2% in their April estimates. The 2009 outlook was unchanged, with officials expecting growth between 2% and 2.8%.

Fed officials marked up their inflation projections for this year, measured by the price index for personal consumption expenditures, to between 3.8% and 4.2%, up from the 3.1% to 3.4% seen in April. The outlook for inflation next year was 2% to 2.3%, up only slightly from the 1.9% to 2.3% from the April meeting.

Expectations for the unemployment rate, now 5.5%, was unchanged at 5.5% to 5.7%.

Translation:

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