Fed's Employment Forecast Should Scare Obama

It won't fall fast enough for him to look good in 2012
By Kevin Spak,  Newser Staff
Posted Nov 24, 2010 10:16 AM CST
In this Nov. 4, 2010 photo, a sign turning away potential job-seekers is seen outside of a construction site in New Orleans.   (AP Photo/Patrick Semansky)

(Newser) – The Federal Reserve issued a dour new economic outlook yesterday, predicting that the unemployment rate, currently at 9.6%, will fall to only 9% by 2011 and 8% by late 2012. That's bad news for everyone, but especially for President Obama; Daily Intel notes that incumbents lost in four of the past five presidential elections in which unemployment was at more than 6%.

The sour outlook comes, it should be noted, amidst a number of positive economic signs, the Washington Post observes. The GDP rose at a 2.5% annual rate this summer, the Commerce Department said yesterday, instead of the 2% previously reported. The number of people applying for unemployment benefits, meanwhile, fell to a two-year low, while incomes and consumer spending rose, according to a Labor Department report issued today.

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