Fed lowers economic expectations for 2011

Top Federal Reserve officials expect the unemployment rate to remain around nine percent at the end of next year and eight percent at the end of 2012, according to internal forecasts that drove the central bank to take new efforts to boost the economy three weeks ago.
The 18 top leaders of the central bank expect the U.S. economy to grow at a 3 to 3.6 percent pace next year, which by their calculations will be enough to bring joblessness, currently at 9.6 percent, down to the 8.9 to 9.1 percent range in late 2011. In projections made in June, the same officials had been more optimistic, forecasting 3.5 to 4.2 percent growth in 2011 and an unemployment rate that would decline to the 8.3 to 8.7 percent range.

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