WASHINGTON DC: The credit squeeze and depressed housing market has prompted America's Federal Reserve to revise down its growth forecasts for 2008 to between 1.8% and 2.5%.

This compares with its July prediction of growth in 2.5% to 2.75% range.

Despite last month's 0.25% interest rate cut, agreed by the narrowest of margins, the Fed expects inflation to remain moderate, while economic growth slows and unemployment rises slightly.

Data sourced from BBC Online; additional content by WARC staff