Federal Reserve lowers its estimates for US economic growth.
In an updated forecast, the Fed now estimates the economy will grow between 2.7% and 2.9% this year. That’s down from the previous estimate of 3.1% to 3.3% estimate made after its last meeting in April.
Federal Reserve Chairman Bernanke said the main causes of the recent slowdown are temporary. The Fed expects the economy to pick up next year after the effects of Japan’s March 11 earthquake and higher gasoline prices diminish.