shareSharenocloseShare pagelinkCopy linkAbout sharing

image copyrightReuters

Prospects for the US economy have brightened since September, despite a recent surge in coronavirus cases, America’s central bank said on Wednesday.

Federal Reserve officials said they expected growth of roughly 4.2% next year, better than previously forecast.

They forecast a fall in the unemployment rate from 6.7% to 5%.

The update comes as US medical authorities begin to distribute vaccines against Covid-19.

Federal Reserve Chair Jerome Powell warned that the coming months would be “particularly challenging,” as the US battles a surge in coronavirus cases, while businesses and the unemployed face deepening hardship.

But he said he was hopeful that widespread distribution of