The US Federal Reserve today lowered slightly its forecasts for economic growth in the coming year, reflecting the United States' sluggish recovery from recession, according to dpa. The US central bank dropped its 2010 growth prediction to 3-3.5 per cent, down from a 3.2-3.7-per-cent forecast made in April. The unemployment rate, now at 9.5 per cent, will remain at 9.2-9.5 per cent through this year. The downward revision was based on more recent US economic figures and outside developments weighing on the United States, the Fed said, likely referring to the European debt crisis. The US recovery was expected to be "gradual" in the coming months, with inflation remaining at a low of near 1 per cent. In 2011, the world's largest economy is now expected to grow 3.5- 4.2 per cent, compared to April's prediction of 3.4-4.5 per cent. Growth in 2012 is likely to come in at 3.5-4.5 per cent.
