Fed Sees Unemployment as Low as 6.5% Threshold by End-2014
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Federal Reserve officials forecast the U.S. unemployment rate will fall to 6.5 percent to 6.8 percent by the end of 2014, possibly reaching its stated threshold to raise the benchmark lending rate.
At the same time, 15 of 19 participants on the Federal Open Market Committee expect the first rise in the federal funds rate to occur in 2015 or later, forecasts released today in Washington showed. That exceeds the 14 of 19 who projected in March the first rate increase would happen after 2014.