Wednesday, February 20, 2008

Fed forecasts inflation, unemployment (AP)



Work progresses on a new home in a Little Rock, Ark. neighborhood Tuesday, Feb. 19, 2008.  The Commerce Department said that construction of new homes and apartments rose by 0.8 percent to a seasonally adjusted annual rate of 1.012 million units in January. That was the first increase since October and followed a plunge of 14.8 percent in December. (AP Photo/Danny Johnston)AP - The Federal Reserve on Wednesday lowered its projection for economic growth this year, citing damage from the double blows of a housing slump and credit crunch. It said it also expects higher unemployment and inflation.




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