(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.
Copyright 2012 ABC News Radio
Robert Mclean, CNN Newswire
Brian Stelter, CNN Money