Recession Will Cost More Jobs, End 'Before Long': Fed

By Harry Kimball,  Newser Staff
Posted Jul 15, 2009 2:21 PM CDT
Federal Reserve Chairman Ben Bernanke.   (AP Photo)
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(Newser) – The Federal Reserve is confident the general economy is turning around but still pessimistic on the jobs part, the Wall Street Journal reports. In June meeting minutes issued today, those gathered agreed that data since April “indicated that the economic contraction was slowing and that the decline in activity could cease before long.” But “most participants anticipated that the employment situation was likely to be downbeat for some time.”

As expected, members agreed to keep interest rates “exceptionally low” for “an extended period” because of the merely “gradual upturn in activity and the lack of inflation pressures.” On unemployment, which now stands at 9.5%, officials predict 2009 will end with the rate between 9.7% and 10.5%. One member, in the minority, thinks it could climb to 10.6% in 2010.