Slowed US economic growth prompts Federal Reserve to lower its forecasts

THE US economy expanded less than estimated in the second quarter, underscoring the weakness that has prompted the Federal Reserve to mark down its growth forecasts.

Gross domestic product climbed at a 1% annual rate from April through June, down from a 1.3% prior estimate, revised Commerce Department figures showed.

Fed chairman Ben Bernanke, speaking at a conference in Wyoming, said the central bank still has tools to spur the economy without signalling whether policy makers are likely to deploy them. Another report showed consumer sentiment this month fell to the lowest level since November 2008 amid financial-market turmoil and political wrangling over the budget deficit.