Despite President Obama's hubris over the 'recovery', his crowing about the jobs record, and his insistence that while "there's more to be done," everything is awesome, The White House just took the meat-cleaver to its US economic growth forecasts [6]...cutting 2015 growth from 3% to 2%. That was not all though as their forecasts see no recession until at least 2025, unemployment under 5.0% for at least the next decade, stable inflation for 10 years, and last but not least - a 3-month T-Bill rate of over 3% within the next few years.
So growth is going to drop... but there'll be no rise in unemployment, rates will surge but there will be no inflation outbreak, and trend growth now appears to be just 2.3%...
[7]
As The Wall Street Journal reports [8],
The White House said it sees U.S. growth rising by just 2% this year before rebounding to 2.9% in 2016 - down from its earlier forecast of 3% growth for both 2015 and 2016 released in February - after the economy stalled during the first quarter.
The new estimate came Tuesday in the White House budget office’s “Mid-Session Review,” [6]which updates the economic and budget projections it made at the beginning of the year. The new growth forecast largely reflects the current thinking among private economists.
The economy contracted at a 0.2% seasonally adjusted annual rate in the first quarter.
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This should make things a little awkward for Janet...
