Fed faced with upbeat employment forecasts

In June, the U.S. Federal Reserve told investors its bond buying may stop when unemployment reaches 7% in America.

Read: Deciphering the Fed’s announcement—and the market’s response

And Chairman Bernanke predicted this would happen in mid-2014, meaning QE would slow down incrementally and interest rates wouldn’t rise for some time.

Now, however, major global banks are forecasting unemployment will drop to that level by Q4 2013, reports Bloomberg. Analysts say this will make the Fed’s communication with investors more difficult, as people are still battling market volatility and trying to figure out the Fed’s plans. Read more.

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