Fed to publish long-term interest rate forecasts

The US Federal Reserve is to start publishing forecasts of where it expects interest rates to be in the future in an effort to strengthen the economic recovery.

Starting this month, members of the Federal Open Market Committee (FOMC) will release forecasts for where they predict the key Federal Funds rate will be in the fourth quarter of the current year, in future calendar years and beyond that.

The statement, released alongside the minutes of the FOMC's December policy meeting where rates were left on hold at between 0-0.25%, has been carried out to try to lift the global economy by giving investors more clarity around future interest rates.

It should allow businesses and consumers the chance to plan their own finances more accurately while also meeting chairman Ben Bernanke's own personal goal of increasing transparency.

It comes at a time when the US economy is starting to pick up, but the FOMC is very aware of the dangers posed by external sources.

In the minutes of the latest meeting the FOMC said the US economy continued to grow despite the problems around the globe.

It said: "Information received since the committee met in November suggests the economy has been expanding moderately, notwithstanding some apparent slowing in global growth."