Fed forecasts only modest growth

Next year the economy will expand at between 2.5 percent and 2.9 percent, and in 2013 growth will be in the 3 percent and 3.5 percent range - not horrible but not nearly enough to stimulate employment growth. To that end, the Federal Reserve expects the jobless rate, which was at 9.1 percent in September, to remain above 8.5 percent at the end of 2012. It is projected to be above 7.8 percent at the end of 2013. Keep in mind that the Fed doesn't have a great track record with forecasts (and these extended guesstimates aren't given much credence), but the numbers are within the range of private estimates.