The American central bank, the Fed, has revised its forecasts for the growth of the U.S. economy this year upward based on data showing strong growth in the first quarter.
The Fed now predicts an economic growth rate in the U.S. this year in the range of 3.2 to 3.7 percent, compared to its January forecast of a growth rate of 2.8 to 3.5 percent. Forecasts for 2011 and 2012 remain unchanged. The unemployment rate is expected to range between 9.1 and 9.5 percent this year, with the American central bank lowering its January forecast of an unemployment rate in the range of 9.5 to 9.7 percent.
In the first quarter of this year, the world’s largest economy grew by 3.2 percent compared to the same period last year, according to the first government forecast. The unemployment rate was 9.9 percent in April as the labor market lags behind the recovery of the broader economy. According to official notes from the Fed’s April meeting, the committee determined that the level of personal and business consumption is “generally consistent with a moderate pace of economic recovery.” It also concluded that the state of the labor market “appears to be beginning to improve.” (H)
