Fed oblique projections until 2011 growth

WASHINGTON--responsible for the Federal Reserve have become more pessimistic in their economic prospects by next year and have reduced their forecast for growth.

The economy will grow only 2.4% to 2.5% this year, the US Federal Reserve officials said on Tuesday in a forecast update. It is to suddenly from a previous projection of 3 to 3.5%. Next year, the economy will expand by 3 per cent to 3.6%, Federal Reserve us thereof, also much lower than its June forecasts.

Project of Fed officials unemployment change considerably this year, an average of 9.5% and 9.7%. The current unemployment rate was 9.6%. Progress in the reduction of unemployment has been "disappointingly slow", said the Central Bank, according to the minutes of the meeting of November 2-3.

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The darker perspective helps explain why the American Federal Reserve decided meeting this month launch a new round of stimulus. The Central Bank provides buy 600 billion in bonds of the Treasury Board for eight months to try to reduce the rate of interest and stimulate spending more.

The Fed is slightly more optimistic about 2012, partly because officials expect bond purchasing program to have a positive impact. The economy is expected to grow by 3.6% to 4.5% this year, better than forecast 3.5 to 4.5% June tick.

Economy will also grow 3.5 to 4.6% in 2013, the Central Bank said the first time, it has issued projections for that year.

The Economic Outlook has prepared earlier this month at the meeting of the Federal Reserve and released Tuesday. It reflects the opinion of the Board of Governors of the Federal Reserve and its regional bank presidents.

The unemployment rate will be 8.9% to 9.1% in 2011 and predict the Fed officials. This is far worse than the projection of June from 8.3 to 8.7%.

By 2012, when President Barack Obama to the electorate, unemployment will be 7.7% to 8.2%, reaching the previous forecast from 7.1% to 7.5%.

The Federal Reserve of a slow economy with only a gradual improvement in the labour market forecasts are generally similar to those private economists. A study of the Associated Press 43 leading economists last month showed that they expect the economy to expand only 2.7 per cent in 2011, after growth only 2.6% this year.

The unemployment rate will remain at 9% at the end of 2011, economists said.

The Fed said the released data since its recent projections show that the economy was lower in the first half of this year previously thought. The economy grew at 1.7% annual rate during the period April-June, much lower than the first quarter of 3.7%.

History: Slightly faster growth in the summer economy

Consumers are still retain their spending, said the Central Bank, and recent reports on housing, manufacturing, international trade and employment were lower than expected June meeting.

The Central Bank is expected at this price will remain in failure. Inflation should rise 1.1% to 1.7% in 2011, little changed since the previous forecasts from 1.1 to 1.6%.

? 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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