Fed Officials Raise GDP Forecasts:
Federal Reserve officials are feeling better about the economy. The Fed officials have updated their economic forecasts released Wednesday (Feb. 16,). The new forecast for the growth rate is now between 3.4 percent and 3.9 percent this year which is an upward revision. The prior forecast for economic growth released in November was roughly between 3 percent and 3.6 percent. It seems the Fed officials are also expecting a growth spurt like we are. Th central back also predicts that unemployment will decrease below 9 percent. We believe unemployment will fall below 9 percent and that pent up demand for labor is high right now.
It’s All About Profits: (and conditions for growth)
Profits are up. Many of the companies that have reported for their fourth quarter profits have surpassed expectations giving more evidence that a growth spurt is underway. The increase in profits will lead to new hires and we are looking at hours worked and prices of labor. Several companies that usually don’t shine during profit season have been rising in terms of investor interest as of late. Looks like the ‘not so new normal’ has taken effect. Profits are up at a time when monetary and fiscal policy is complementary to expanding the economic base.
Mergers Are Back- New Media On The Rise.
Mergers are on the rise and it looks like consolidation in the media sector may be coming as more old media firms expand their content offerings on the internet. The merger news has several new media firms poised to grow from the increased interest in social networking and branding via the internet.