A Federal Reserve report cautions that a full recovery for the economy and labor market could take five to six years. Record-low interest rates could lead to excessive risk-taking in financial markets, the Fed says, and could cause consumers and businesses to worry about increased inflation. Fed officials expect a gradual unfolding of the recovery, with modest growth keeping unemployment elevated for the next several years. The jobless rate is predicted to be between 8.6 and 10.2 percent next year, slightly better than an earlier forecast of up to 10.6 percent.
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