Over the past decade, Fed GDP forecasts have tended to be overly optimistic, as a strategy memo from financial services firm KBW pointed out in a memo this week. If that trend continues, it indicated, it could mean lower interest rates for even longer than the Fed currently predicts: "[The trend of overestimating GDP] suggests that when interest rate forecasts are released on Wednesday, they are likely to present future rate increases earlier than they will actually occur, assuming the forecasting error is maintained."
- Read about Apple's latest earnings report.
- See our analysis of the State of the Union address.
- See how the European crisis could affect the U.S. economy.
Corrected on 1/26/12: An earlier version of this article misspelled Brad Sorensen’s name.
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