RJ and Makay

The Federal Reserve announced revised projections that say the country’s unemployment rate will stay higher than previously forecasted. Today’s unemployment rate of 9.6% is now expected to drop only to about 9% by the end of 2011, and to about 8% by the time of the next presidential election in late 2012.

This stagnant economic outlook contrasts with the signs that recovery is slowly progressing: the Commerce Department recently reported that gross domestic product increased at a 2.5% annual rate over the three months ending in September, in contrast with the earlier estimation of only a 2% increase. There have also been solid numbers behind an increase in job creation, manufacturing and retail in the last few weeks. Additionally, the corporate sector has experienced a high recovery rate over the past year, with profits rebounding overall at 28%, reaching record-setting levels in the third quarter.