The Federal Reserve sharply downgraded its economic outlook at its latest meeting only three weeks ago, minutes released on Wednesday revealed, challenging the view that green shoots of recovery are now plain to see.
“The staff’s projections for real GDP in the second half of 2009 and 2010 were revised down,” the minutes say. Fed staff no longer expected growth would recover this year, and instead forecast that output would “flatten out gradually” in the second half and then “expand slowly next year”.
