Higher Interest, Inflation but Lower Unemployment Seen
The Reagan Administration today revised its economic forecasts, projecting higher interest rates and inflation but lower unemployment for the rest of 1987.
At the same time, the Administration stuck by its January forecast for growth of the gross national product of 3.2% for this year.
The Administration said inflation will rise to 4.8% this year--a full percentage point higher than the Administration had projected in January.
The Administration also raised its projection on interest rates--to 5.7% for three-month Treasury bills from the 5.4% projected in the President’s budget in January and to 8% for 10-year Treasury securities from the 6.7% forecast earlier.
The Administration revised downward its projection for unemployment--to 6.2% for 1987 from the 6.7% rate predicted in January.
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