The Federal Reserve has officially revised its economic outlook downward today. In April the Fed predicted economic growth would be between 3.1-3.3 percent and by the end of the year unemployment would rate would drop to between 8.4-8.7 percent.
Now the Fed believes growth will be only 2.7-2.9 percent with unemployment will only drop to 8.6-8.9 percent by the end of 2011. Most important politically, they are predicting unemployment will drop to only between 7.8 and 8.2 percent in 2012.
That would mean the unemployment rate going into the 2012 election could easily be technically above 7.8 percent, the unemployment rate in January of 2009 when President Obama took office.
The Obama campaign is already struggle with the fact that 44 percent of voters feel they are worse of then when Obama took office. If unemployment is officially higher in the months leading up to the general election than it was the day Obama first took office, that fact could be turned into devastatingly powerful political talking point for the Republican candidate hammer non stop.