Dismal Data

Fed: 2009 Recovery Unlikely

Wells Fargo may have had a record first quarter, but don’t let that trick you into thinking the economy’s all better: The Financial Times is reporting that “The Federal Reserve sharply downgraded its economic outlook at its latest meeting only three weeks ago, minutes released on Wednesday revealed, challenging the view that green shoots of recovery are now plain to see.” GDP projections for the second half of 2009 and 2010 were downgraded, with a recovery no longer expected this year. The Fed said that this year output would “flatten out gradually” and then “expand slowly next year.” The New York Times, meanwhile, is reporting that “Major chains on Thursday reported March sales results that were worse than their February figures.”