Fed cuts US growth forecast on weak data

The Federal Reserve has scaled down its growth forecast for the US in the face of higher energy costs and weak manufacturing data.

Chairman Ben Bernanke issued a series of warnings about the state of the US economy as he said growth is more likely to be between 2.7% and 2.9%, instead of the 3.1%-3.3% predicted in April. Higher energy prices have been impacting consumption, he said, however, he believes this should moderate in due course, the BBC reports. Problems in the financial and property markets have been more difficult than anticipated, holding back the economy, and are likely to persist for longer. Weak manufacturing figures, impacted by the Japanese earthquake and tsunami, have also played a part in th...