WASHINGTON (AP) -- Federal Reserve officials have become more pessimistic in their economic outlook through next year and have lowered their forecast for growth.
Fed officials say in an updated forecast that the economy will grow only 2.4 percent to 2.5 percent this year, down sharply from a previous projection of 3 percent to 3.5 percent. Next year, the economy will expand by 3 percent to 3.6 percent, down sharply from the previous forecast of 3.5 percent to 4.2 percent.
The darker view helps explain why the Fed decided at its Nov. 2-3 meeting to launch another round of stimulus. The central bank plans to buy $600 billion in Treasury bonds over the next eight months in an effort to lower interest rates and spur more spending.