U.S. Fed sees economic recovery stronger in 2010

07:54, May 20, 2010      

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The U.S. Federal Reserve revised upward its forecast of the U.S. economic growth in 2010, and also foresaw lower unemployment in the country, according to minutes of the latest central bank meeting released on Wednesday.

Top officials of the Fed said that they think the economy can grow between 3.2 percent and 3.7 percent this year. That is stronger than their forecast of a growth range of 2.8 percent to 3. 5 percent in January.

According to the Federal Open Market Committee (FOMC), the central bank's policy-making group which meets eight times a year to set interest rates, unemployment rate would fall to between 9.1 and 9.5 percent by the end of the year, down from the previous estimate of 9.5 to 9.7 percent.

"The labor market showed signs of a nascent recovery in recent months," the Fed said.

The central bank said that it will maintain the target range for the federal funds rate, and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate "for an extended period."

Since December 2008, the Fed has been keeping the federal funds rate at a historical low of zero to 0.25 percent.

The Fed's decision to keep rates at record lows for an " extended



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