Fed says U.S. economy still strong enough to handle rate hike

The U.S. economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, U.S. Federal Reserve officials indicated on Wednesday. After contracting in the first quarter, the economy is now on track to grow between 1.8 percent and 2.0 percent this year, according to the central bank's latest policy statement and new projections issued by Fed policymakers. The Fed also said labor markets continued to improve, though with unemployment expected to be slightly higher at the end of the year than previously forecast in March.

Fed says U.S. economy still strong enough to handle rate hike source: http://finance.yahoo.com/news/fed-says-u-economy-still-180426893.html