FOMC Lowers Growth Outlook; Bernanke Calls Econ ?Mixed?

[Stocks-to-Watch]

In his press conference following the Federal Open Market Committee’s release of its economic projections and, for the first time, its expectations for the federal-funds rate target, Fed Chairman Ben Bernanke termed the economy “mixed” notwithstanding some stronger-than-expected recent data reports.

The FOMC lowered its “central tendency” of gross domestic product growth for 2012 to 2.2%-2.7% from its previous forecast of 2.5%-2.9% released last November. The panel also shaved its 2013 GDP forecast to 2.8%-3.2% from 3.0-3.5%. As it previously reported, the FOMC now expects the fed-funds target to remain near zero through the end of 2014, from its previous expectation of holding the rate there through mid-2013.

Concerning the current outlook, Bernanke noted the “headwinds” to growth emanating from Europe and other foreign economies. He added he’s “not ready to declare” the economy has entered “a new, stronger phase.” And as usual, he said the Fed will continue to monitor the data.



Original Article Source by Barrons.com