Federal Reserve to Revise Economic Outlook Downward for 2011

Federal Reserve Bank will revise it’s economic outlook  for 2011 downward during the Open Market meeting on Tuesday.

The revision comes as jobs outlook is extremely weak , falling consumer confidence and growing fears of the US economy entering a double-dip ( a/k/a w-shaped) recession.

The Federal Reserve may consider programs to strengthen the economy including: reinvesting in mature mortgage backed securities which would restrict the ability of the shrink the balance of the Fed.

Investors will review the June Open Market Meeting notes where the Fed would considering using all of its tools available to use the build up the US economy and keep prices stable.  This would strengthen the economy if the policymakers see the need for more intense action.

Financial Times

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