Fed forecasts – November 2010

The Fed’s forecasts look pretty similar to what I wrote on Monday but there are some interesting points:

First, there was barely any change at all to the 2012 growth forecasts – the range edges down a little to 2.6-4.7 per cent – and elsewhere we learn that the Fed staff actually upgraded their growth forecasts because of the lower interest rates, currency etc brought on by expectations of QE2. That shows strong confidence in the effectiveness of the policy.