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Federal Reserve Expects Higher Unemployment than Previously Forecast

Business

0  Updated at 1:20 pm, June 20th, 2012 By: ABC Digital

iStockphoto/Thinkstock(WASHINGTON) — The Federal Reserve expects unemployment to be higher at the end of the year than it originally forecast back in April.

The Fed now expects unemployment to be between 8 percent and 8.2 percent by the end of the year; previously, the unemployment rate was forecast to be between 7.8 percent and 8 percent.

GDP growth is expected to be slower, as well.  The Fed now forecasts growth of between 1.9 percent and 2.4 percent by the end of the year; previously, its expected growth between 2.4 percent and 2.9 percent

Troubles in Europe are one of the big reasons the Fed cites for its gloomier forecast.

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