The Fed Keeps Getting More and More Pessimistic

[Purveyor]

In its latest outlook for the U.S. economy, the Federal Reserve once again lowered its projections for GDP growth.

On Wednesday, the Fed moved a step closer to hiking rates for the first time since 2006 by removing the word "patient," but appeared overall dovish as it downgraded economic growth and inflation projections. Earlier Bloomberg pointed out that unlike in December, Fed officials no longer see economic growth reaching 3 percent -- this year, next year, the year after that, or in the long run.

Deutsche Bank Securities Chief International Economist Torsten Sløk sent out a chart today that crisply shows how the Fed is becoming more and more pessimistic as time goes on. You can see the recent projections in the dark blue line.


Source: Deutsche Bank

"The bottom line in the chart below is that the Fed is no longer expecting a strong rebound over the coming years. In my view, the risks are rising that the Fed is becoming too pessimistic about the outlook," he said.


http://www.bloomberg.com/news/articles/2015-03-20/the-fed-keeps-getting-more-and-more-pessimistic

[blkmusclmachine]

1. Greasing the skids for another Bush.