The Federal Reserve's forecasts contained may revisions, some good, some bad. Inflation forecasts were revised slightly higher, suggesting that the central bank doesn't anticipate deflation becoming an issue, while GDP projections were revised up:
2009 GDP: -1.5% to -1.0% from -2.0% to -1.3% in April
2010 GDP: 2.1% to 3.3% from 2.0% to 3.0% in April
2011 GDP: 3.8% to 4.6% from 3.5% to 4.8% in April
However, the labor market outlook became increasingly bleak:
2009 Unemployment Rate: 9.8% to 10.1% from 9.2% to 9.6% in April
2010 Unemployment Rate: 9.5% to 9.8% from 9.0% to 9.5% in April
2011 Unemployment Rate: 8.4% to 8.8% from 7.7% to 8.5% in April.
Source: Federal Reserve
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