Fed predicts a slow economic recovery

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WASHINGTON, Oct. 4 (UPI) -- The U.S. Federal Reserve predicted the unemployment rate would fall gradually, reaching 6.8 percent by 2015.

In projections based on data available in mid-September, released as part of the Open Market Committee's Sept. 12-13 monetary policy meeting, the central bank said the unemployment rate would drop to between 7.6 percent and 7.9 percent in 2013 and to somewhere between 6.7 percent and 7.3 percent in 2014.

The Fed predicted that gross domestic product growth, adjusted for inflation, would fall between 1.7 percent and 2 percent in 2012 and rise to 2.5 percent to 3 percent in 2013.

The GDP growth rate adjusted for inflation would fall between 3 percent and 3.8 percent in 2014 and rise at the same pace in 2015.

The inflation rate is expected to hold under 2 percent over the next three years, the bank said.