Slower growth will push unemployment higher, the Fed said.
The jobless rate will probably rise this year to 4.75 percent to 5 percent in the fourth quarter, according to the forecast, and 4.75 percent to 5.25 percent next year. In February, the Fed's central tendency was for an unemployment rate of 4.5 percent. In the fourth quarter of last year, the unemployment rate averaged 4 percent, close to a 30-year low.
Greenspan is required to present testimony to the Senate Banking Committee in February and the House Financial Services Committee in July. He can appear voluntarily at any time and will reprise his testimony from today to the Senate committee on July 24.
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