Published by Zeb BhamThe Federal Reserve has cut its forecast for this year's economic growth, following a weaker-than-expected first quarter.Ben Bernanke, chairman of the Fed, said growth for the year is now expected to be in the range of 3.1 per cent to 3.3 per cent.Speaking at his first press conference following a policy meeting, Mr Bernanke signalled that inflation is also likely to rise, up to between 2.1 per cent and 2.8 per cent. Previous estimates predicted a high of 1.7 per cent.Despite these changes, longer-term growth projections remain unchanged, he said, noting that there are currently a number of transitory factors affecting the nation's economy.Payroll improvements may not come without creating more inflation risks, he reportedly said.He added that changes to inflation would necessitate action.The Fed once again this month kept its interest rates unchanged.Following the announcement, the dollar continued to lose value on the foreign exchange market.For more information on international payments, visit our Smart FX site