Great Graphic: Fed Unemployment Projections

Here is a Great Graphic from Brad Plumer at the Ezra Klein's Wonkblog at the Washington Post.  It shows the Federal Reserve's forecasts of US unemployment and the actual performance.  The disappointing performance is why many continue to look for QE3.   Plumer's piece, though, focuses on a version of Q3 where the Fed would target a particular rate (such as the 30-year mortgage rate) that would be enforced by unlimited Fed buying of MBS securities. 

While this is possible, I would continue to  lean against it any time soon.  The Federal Reserve opted for the continuation of Operation Twist.  Barring some major break or event, it seems that the FOMC meeting later this month is too early for the Fed to come up with a new policy response.  In the past, the Fed has completed one stimulus program before introducing another. 
Great Graphic: Fed Unemployment Projections Great Graphic:  Fed Unemployment Projections Reviewed by Marc Chandler on July 06, 2012 Rating: 5
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