Gloomy Fed pulls trigger on more economic stimulus

The Federal Reserve unleashed a fresh wave of economic stimulus Wednesday as it predicted subpar US growth would be even worse this year than thought.

After a two-day meeting the Fed doubled down on a program to lower long-term borrowing costs, as it sharply revised down 2012 growth projections to between 1.9 and 2.4 percent.
That was a half point cut from predictions made as recently as April this year, when cautious optimism reigned.

With Fed Chairman Ben Bernanke also pointing to slower progress in reducing unemployment and to spillovers from Europe's economic crisis, that optimism has been put to bed.

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