US Fed issues downbeat growth forceast

The US Federal Reserve today painted a bleaker outlook for the nation's economy, which it thinks will grow much more slowly and face higher unemployment than it had estimated in June.

The Fed now predicts the economy will grow at a scant 1.6% to 1.7% for 2011. For 2012, it thinks growth will range between 2.5% and 2.9%. Both forecasts are roughly a full percentage point lower than its June forecast.