The Federal Reserve on Wednesday slightly raised its forecast for how fast the U.S. will grow in 2014 and the central bank also expects the unemployment rate to fall a bit quicker than it previously estimated. The latest quarterly forecast by the Fed pegs U.S. growth at a range of 2.8% to 3.2% in 2014. That's a bit stronger than its previous estimate of 2.9% to 3.1%. The Fed also predicts unemployment will range from 6.3% to 6.6% in 2014 and 5.8% to 6.1% in 2015. By 2016, unemployment should drop below 6%. Inflation as measured by the PCE index, meanwhile, could range from 1.4% to 1.6% in 2014, down from the Fed's prior forecast of 1.3% to 1.8%. The PCE index is on track to rise about 1% in 2013.
Source: Marketwatch
Source: Marketwatch
