Fed: recession easing, but unemployment rising

[maseman]

WASHINGTON - The Federal Reserve expects the economy this year will sink at a slower pace than it previously thought, but that unemployment will top 10 percent, according to a forecast released Wednesday.

The Fed now predicts the economy will shrink between 1 and 1.5 percent this year, an improvement from its old forecast issued in May. At that time, the Fed projected the economy would contract between 1.3 and 2 percent.

http://www.msnbc.msn.com/id/31925437/ns/business-stocks_and_economy

[imdjh]

1. Isn't rising unemployment good for the stock market?

I can't remember, but there is something that goes up when the unemployment rate goes up. Is it that interest rates go down when unemployment goes up?

[maseman]

2. Not good for the stock market

WHen unemployment goes up it dims hope for economic recovery since fewer workers mean fewer goods and services sold. THe stock market would go nuts right now if it saw some decline in the unemployment rate.

[imdjh]

3. That's what kills me about the "billions being spent to stimulate the economy"

I see the guys begging on the street corners. I see the guys standing in the sun selling newspapers on Sunday. I see the guys going from house to house looking for yard work.

Where are the large scale employment programs? Where are the crews of unemployed people being put to work on roads, parks, and other public projects?

[tabbycat31]

4. we had to have tax cuts, grrr

[Lone_Star_Dem]

5. Not that I'm aware of. It does have a benefit in lowering inflation, however

Which has the opposite effect of boosting the stock market I would think. :shrug
:

[imdjh]

7. thanks

[Orangepeel]

6. inflation n/t