Fed raises 2011 economic growth forecast

The US Federal Reserve has raised its economic growth forecast for the US this year from 3%-3.6% to 3.4%-3.9%.

According to the FT, minutes from the Federal Reserve's latest Federal Open Market Committee meeting says improved consumer spending and stronger exports has lead the group to revise its forecast upwards. However, Federal Reserve members expressed uncertainty over the effects of QE2 and concerns over US unemployment, currently at 9.4%. "A few members remained unsure of the likely effects of the asset purchase programme on the economy, but felt making changes to the programme at this time was not appropriate," says the Committee. Meanwhile the central bank says measures of underlyin...