US Fed sees more tough times ahead

Source: Press TV
http://www.presstv.ir/detail.aspx?id=134839§ionid=3510203


The US Federal Reserve says the American economy is facing an outlook worse than expected because of faltering growth and rising unemployment.

The US central bank has warned that growth will slow to 3.0 to 3.5 percent this year, down from the 3.2 to 3.7 predicted just months ago, AFP reported on Wednesday.

It has also noted that the economic recovery continues, but at a moderate pace.

Meanwhile, the forecast for unemployment at the end of this year is 9.2 to 9.5 percent, meaning that the troubled labor market will recover more slowly than expected.

The US jobless figure is not expected to go below seven percent before 2013, leaving millions of Americans out of work. The Fed might consider whether further policy stimulus is necessary as it gauges growth.

But with interest rates at all-time lows, analysts say the central bank has few tools to help fix the US economy.