Federal Reserve cuts forecast for US economic growth from 2.9 pc to 2.4 pc

Washington, June 21 (ANI): The Federal Reserve, the central banking system of the United States, has cut its forecast for country's economic growth from 2.9 percent to 2.4 percent in 2012.

According to The BBC, Federal Bank has also predicted an unemployment rate of up to 8.2 percent.

Federal Reserve chairman Ben Bernanke said that unemployment was still too high and was going down too slowly.

"We are prepared to take further steps if necessary to promote sustainable growth and recovery in the labour market," he said.

The Bank's estimation of the unemployment rate has risen after the jobless rate rose from 8.1 percent to 8.2 percent in April.

The central bank also extended its programme of swapping short-term bonds for long-term ones, known as 'Operation Twist ', until 2012 end.

The idea of the programme, which is worth 267 billion dollars, is to cut the long-term cost of borrowing for businesses and households.

The central bank's statement pointed out that 'growth in employment has slowed in recent months, and the unemployment rate remains elevated'. (ANI)