The US Federal Reserve has cut its growth forecast for 2014 because of the harsh winter weather.

One big question for Fed watchers is when the central bank will raise its short-term interest rate

The central bank is now predicting growth of between 2.1% and 2.3% for this year, down from its March forecast of 2.8% to 3%.

However in its accompanying statement, the bank said that economic activity had "rebounded in recent months".

As expected, it has also trimmed back its stimulus programme by $10bn (£5.9bn) a month to $35bn.

The central bank has been buying bonds to keep long-term interest rates low and encourage banks to lend.

This is the fifth cut in purchases since December and it is expected to stop buying bonds altogether by the autumn.

However the chair of the bank, Janet Yellen, stressed that this was not a pre-set programme and if necessary it would change course.

As far as interest rates go, the bank said they would remain near zero "for a considerable time" after the bond buying ends.

Questioned as to how long that might be, Ms Yellen said there was "no mechanical formula" and that it "depends on how the economy progresses".

Source: BBC