Thursday 18 February 2010

US unemployment 'to stay high despite economy growing'

The US economy is still on target to grow strongly during 2010, but unemployment will remain high, the US Federal Reserve has warned.

In its latest forecast, the Fed said that the economy would expand between 2.8% and 3.5% in 2010, better than its previous estimate of 2.5% to 3.5%.

Yet the unemployment rate is expected to remain between 9.5% and 9.7% in 2010, easing to 8.2% to 8.5% next year.

President Barack Obama earlier admitted many in the US were "struggling".

http://news.bbc.co.uk/2/hi/business/8520866.stm

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