Fed: Slightly Lower Growth, Unemployment In 2012

By Martin Crutsinger

WASHINGTON (AP) -- The Federal Reserve has slightly reduced its outlook for U.S. economic growth this year but is a little more optimistic about the unemployment rate.

The Fed expects the economy to grow between 2.2 percent and 2.7 percent in 2012, according to its updated economic forecasts released Wednesday. That's down from November's forecast of between 2.5 percent and 2.9 percent.