Lower Growth to Hold US in Depression

The Fed is reported to be lowering growth forecasts and raising unemployment forecasts for 2011 on Tuesday. The original US growth forecast was 3.5 to 4 percent but Fed members believe growth will be 3 percent or less. It may be 2012 until unemployment reaches 8 percent and even after, the long term structural unemployment may be 6 percent rather than the historical rate of 5 percent.