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Fed lowers US growth projections for 2014, 2015

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The Federal Reserve cut back its US economic growth forecasts for this year and next on Wednesday, but said the unemployment rate would fall faster than it forecast in December.

The Fed said the economy was expected to grow 2.8-3.0 percent in 2014 and 3.0-3.2 percent in 2015.

Those figures took 0.2 percentage points off the high end of the range for both years.

But the Fed also forecast that the unemployment rate would drop to 6.1-6.3 percent this year -- compared with the previous 6.3-6.6 percent range estimate -- and to 5.6-5.9 percent in 2015.

In the update of its economic forecasts, the US central bank left its view of inflation largely unchanged, saying it could be as high as 1.6 percent this year and 2.0 percent next.

The Federal Reserve cut back its US economic growth forecasts for this year and next on Wednesday, but said the unemployment rate would fall faster than it forecast in December.

The Fed said the economy was expected to grow 2.8-3.0 percent in 2014 and 3.0-3.2 percent in 2015.

Those figures took 0.2 percentage points off the high end of the range for both years.

But the Fed also forecast that the unemployment rate would drop to 6.1-6.3 percent this year — compared with the previous 6.3-6.6 percent range estimate — and to 5.6-5.9 percent in 2015.

In the update of its economic forecasts, the US central bank left its view of inflation largely unchanged, saying it could be as high as 1.6 percent this year and 2.0 percent next.

AFP
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With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

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