Even if parts of the economy rebound, high unemployment could continue until next year, according to predictions made by top officials of the Federal Reserve.
Quarterly projections made last month at the Fed's meeting and released today predicted unemployment could be between 9.7% and 10.5% by the end of the year. It is currently 9.5%.
The Fed said "underlying financial conditions remain fragile," as indicated by the large number of job losses and the losses in banks' loan portfolios.
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The central bankers also said it could take some time before the economy rebounds.
"Most participants indicated that they expected the economy to take five or six years to converge to a longer-run path characterized by a sustainable rate of output growth and rates of unemployment and inflation," according to the Fed's minutes.
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