It has been forecast by the US Federal Reserve that recession will come to an end soon. However, it displayed concerns regarding the issue of unemployment, which might remain at high levels for a few years.

According to the proceedings at the last meeting three weeks ago, the federal open market committee revealed its forecasts for unemployment. It presently hopes the rate of unemployment to reach between 9.8 and 10.1 per cent in the last quarter of this year. It also thinks that the rate of unemployment will stay at about 9.6 per cent next year and at 8.6 per cent in 2011.

The Fed Reserve officials confirmed: "Labour market conditions were of particular concern to meeting participants." They added: "Most participants anticipated that the employment situation was likely to be downbeat for some time."

However, they did say that the prospects for the wider economy were brightening. The members of the committee reached at a common decision that the economic contraction was slowing. They also forecast that gross domestic product would fall by between 1.5 per cent and 1 per cent this year - the figures being more upbeat than their last forecast in April, of a 2 to 1.3 per cent contraction.

The committee raised growth forecasts to between 2.1 per cent and 3.3 per cent for the next years, from a 2 to 3 per cent range. The members increased projections for inflation, hoping it to remain below 2 per cent through this year and the next.

John Silvia, chief US economist at Wells Fargo said: "The unemployment forecasts are an interesting signal from the Fed's point of view. (It sees) the economy picking up and having a recovery, but with persistent unemployment. It's not a jobless recovery, but it sure is below average job growth in this sort of environment."