Fed Chairman Bernanke finally took the gloves off yesterday and punched Congress right in the face. Finally!
First, he outlined how the U.S. economy is weakening. Here is his assessment:
* The U.S. economy appeared to decelerate in the first half of 2012.
* Job creation recently has been much weaker than the first quarter.
* Household confidence about employment and income is low.
* Manufacturing production has slowed in recent months.
* Surveys of business spending indicate weakness ahead.
* Fed projections of GDP growth were revised down to 1.9 to 2.4 percent this year.
* Fed projections of GDP growth in 2013 have been revised down to a range of 2.2 to 2.8 percent.
* Reduction of unemployment rate will be frustratingly low.
* No members of the Fed think unemployment will be back to normal levels by 2014.
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