http://www.washingtonpost.com/business/economy/yellen-makes-careful-forecast-on-economy/2014/04/16/19c57c64-c59a-11e3-9f37-7ce307c56815_story.html
Janet Yellen, chair of Federal Reserve, said U.S.’s economic recovery will be almost complete within two years on Wednesday in monetary policy speech. To be more specific, the Fed forecasts inflation rate will rise to moderate rate and unemployment will fall back to bottom in 2016. As the economy is recovering, the Fed nada announced that it will pull back its support.
I think this is kind of over-optimistic because Yellen just said at the beginning of April that job market is still tough. Moreover, the higher interest rate is coming so investment will drop and we don't know how will market react.
I agree, this is very much over-optimistic. Even though unemployment is falling, there are still discouraged workers that are not accounted for. Also what about the people who have found a job, but it is not nearly as good of a job as they had before the recession. It is very hard to quantify those people. I think the economy is going in the right direction, but I am not sure the fed should pull back their support.
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