Fed expected to cut US growth forecast

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Fed expected to cut US growth forecast

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The Federal Reserve is expected to lower its growth forecast for 2014 at meetings on Tuesday and Wednesday. In March, it had predicted the US economy would grow by between two point and three percent.

This is set to be blamed on a slower than expected first quarter, after a particularly cold winter in the United States.

Falling unemployment and rising inflation may lead policymakers to project a slightly faster increase in interest rates.

It’s widely believed that the Fed will also continue to trim bond purchases aimed at keeping long-term interest rates down and boosting growth.