The Federal Reserve tonight raised its estimates of US economic growth and unemployment for 2010, noting a 'moderate pace' of recovery from recession.

The Fed projected the US gross domestic product - the broad measure of the country's goods and services output - would expand in a range of 2.8-3.5% this year.

The Fed's previous forecast, last November, put the GDP growth range between 2.5-3.5%.

Though the economy overall appeared in better condition, unemployment was expected to remain high. The Fed predicted the jobless rate to hover between 9.5-9.7%, higher than the November estimate of 9.3-9.7%.