Federal Reserve officials were slightly more optimistic last month about economic growth for this year than they were in November, reflecting expected gains in consumer and business spending from tax cuts. Fed officials say in an updated forecast released today that they think the economy will grow between 3.4% and 3.9% this year. That’s an upward revision from their November forecast, which predicted gross domestic product will grow 3% to 3.6%. The latest outlook foresees little improvement in the unemployment rate. The central bank predicts that the rate, now at 9%, will end the year at that level or possibly dip to 8.8%. Chairman Ben Bernanke and others on the central bank’s interest rate-setting panel remain cautious about how long it will take the economy to generate enough jobs to achieve normal unemployment. The Fed defines that level as 5% to 6%. The Fed says it would take five to six years to lower the rate that much.
Fed officials slightly more upbeat on economy
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