Economic growth for all of 2014 will be significantly lower than the central bank forecast just three months ago. Fed members projected 2014 gross domestic product to hit between 2.1% and 2.3%, which is a huge cut from their March forecast of 2.8% to 3%.
The cut is largely due to the unexpectedly cold weather that large swaths of the country experienced at the beginning of the year, and which economists blame in part for the negative one percent contraction that the U.S, economy endured in the first quarter.
"It still implies GDP growth will average roughly 3.0% at an (sic) annualised pace over the final three quarters of this year," Paul Ashworth, chief U.S. economist at Capital Economics, wrote Wednesday in a note to clients.
While the Fed said it expects unemployment to dip lower by year-end, it suggested that the sluggish recovery Americans have experienced since hitting a bottom in 2009 likely isn't speeding up anytime soon.
-- Written by Joe Deaux in New York.
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