FED GROWTH FORECASTS SUGGEST A 3.4-3.9 PERCENT INCREASE

Members of the US Federal Reserve raised their 2011 economic growth forecasts but expressed uncertainty about the effects of a second round of quantitative easing last month, with some suggesting that signs of a strengthening economy could mean the central bank should scale back its programme to buy $600bn in Treasury securities.

In minutes from its latest Federal Open Market Committee meeting, the Fed upgraded its growth forecast to 3.4-3.9 per cent from its previous range of 3-3.6 per cent, pointing to stronger consumer spending, business investment and exports. In spite of the brighter outlook, the central bank showed ongoing concern about the lack of momentum in the labour market. FT