(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