US economy to strengthen in near term: Federal Reserve

Washington, Nov 23 (IANS) The near-term projection for the pace of growth of the US economy was revised up due to the recent positive data on consumer spending and business outlays,

 but a host of medium-term challenges remained in place, the Federal Reserve said Tuesday.

However, other important near-term indicators of economic activity including consumer confidence and conditions in the labour market remained downbeat, the central bank said in minutes released Tuesday of a Federal Open Market Committee (FOMC) meeting held early this month.
 
 "Moreover, many of the factors that have been restraining the recovery, such as the large overhang of vacant houses, tight credit conditions, and elevated risk premiums, remained in place," noted the minutes.
 
 The Fed said its high-profile officials' outlook for US economic activity over the medium term was similar to the projection made months ago, reported Xinhua.
 
 The US economic growth rate was downwardly revised to an annual rate of 2 percent in the third quarter of this year from the previous estimate of 2.5 percent, but was an acceleration from 1.3 percent in the second quarter, the Commerce Department reported Tuesday.