Fed Officials Sees Lower U.S. Growth, Slow Progress on Jobs
Bloomberg — Federal Reserve officials cut their estimates for 2012 growth after last month’s slowdown in hiring and see little progress on unemployment during the rest of the year.
Fed officials lowered their central tendency estimate for U.S. 2012 gross domestic product growth to 1.9 percent to 2.4 percent from 2.4 percent to 2.9 percent in April. Estimates for 2013 centered around 2.2 percent to 2.8 percent, compared with 2.7 percent to 3.1 percent in the previous forecast.
Consumers and businesses are restraining spending as European financial stress has knocked down U.S. stock prices. Yields on corporate borrowing rates have increased as investors flee from risk.