All Commentary
Thursday, February 17, 2011

Fed Sees Sustained High Unemployment Despite Recovery

“Federal Reserve policymakers expect the U.S. economy to grow as much as 3.9 percent this year, slightly higher than earlier projections, according to minutes of the central bank’s latest policy meeting. The officials think the recovery is on “firmer footing,” the minutes say, but they remain concerned that the pace of growth isn’t enough to put a serious dent in the country’s 9 percent jobless rate. They expect high unemployment to persist at least through the end of 2013.” (Washington Post)

The unemployed will have plenty of time to celebrate the GDP growth.

FEE Timely Classic
“The Natural Rate of Unemployment” by Hans F. Sennholz