Washington, Jul 15 (DPA): The US Federal Reserve Wednesday lowered slightly its forecasts for economic growth in the coming year, reflecting the United States' sluggish recovery from recession and the ill-effects of Europe's debt crisis.

The US central bank dropped its 2010 growth prediction to 3-3.5 percent, down from a 3.2-3.7-percent forecast made in April. The unemployment rate, now at 9.5 percent, will remain at 9.2-9.5 percent through this year.

The International Monetary Fund, by contrast, last week raised its economic projections for the United States to 3.3 percent for 2010, up from an April prediction of 3.1 percent.

The Fed said its downward revision was based on more recent US economic figures and outside developments weighing on the United States - most notably the eurozone's debt woes. Uneasy US consumers and businesses were also stalling a revival in domestic spending.

The US recovery was expected to be "gradual" in the coming months, the Fed said, with inflation remaining at a low of near 1 percent.

In 2011, the world's largest economy is now expected to grow 3.5- 4.2 percent, compared to April's prediction of 3.4-4.5 percent. Growth in 2012 is likely to come in at 3.5-4.5 percent.

US President Barack Obama has been under pressure to show clearer signs of an economic recovery. But the Fed warned that unemployment, too, would fall slower than expected in coming years, dropping to 8.3-8.7 percent in 2011 and 7.1-7.5 percent in 2012.