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The US Federal Reserve (Fed) has projected a worse than expected downturn for the flailing US economy and downgraded its unemployment projections.
Unemployment, the Fed said, will rise to between 9.2 and 9.6 per cent compared to earlier projections of 8.5 to 8.8 per cent.
The Fed’s expectations are in contrast with The Wall Street Journal economist survey last week, which forecast an end to the US recession as soon as August.
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