Federal Reserve: Terrible Economic Pain To Come

"The staff's projections for real GDP in the second half of 2009 and in 2010 were revised down, with real GDP expected to flatten out gradually over the second half of this year..."

OKAY - no gloom and doom - and no depression.

"...and then to expand slowly next year as the stresses in financial markets ease, the effects of fiscal stimulus take hold, inventory adjustments are worked through, and the correction in housing activity comes to an end."

OKAY - natural and government induced market corrections will gradually ease the downturn and the economy will begin to recover.

"The weaker trajectory of real output resulted in the projected path of the unemployment rate rising more steeply into early next year before flattening out at a high level over the rest of the year."

OKAY - the unemployment rate continue to rise during the first part of 2010 but will flatten out at a high rate for the rest of the year. But no prediction of runaway unemployment, runaway inflation or depression!

I CAN LIVE WITH THAT! And I trust to the vast majority of Americans, THAT'S GOOD NEWS because LIGHT CAN BE SEEN AT THE END OF THE TUNNEL and the tunnel opening appears a lot closer.

THAT'S GOOD NEWS James Pethokoukis and not the "extremely gloomy forecast" you opined. Don't be so negative! Now, if only we could muster more confidence in the FEDS - whose monetary policy actually set the stage for our current state of economic affairs.

Tony Lee of CA 4:23PM April 09, 2009