The US economy could grow as much as 1.1 percent in 2009 or contract by 0.2 percent, the Federal Reserve said Wednesday, slashing its previous forecast.

In its latest forecasts published in July, the Fed predicted gross domestic product (GDP) growth in a range of 2.0-2.8 percent.

Since then, a resurgence in the global financial crisis after the collapse of investment bank Lehman Brothers in mid-September has battered the world`s biggest economy.

For all of 2008, the Fed estimated zero to 0.3 percent growth in US gross domestic product (GDP), down from its previous estimate of a 1.0-1.6 percent expansion.

The world`s largest economy was expected to recover in 2010 to a growth rate of 2.3-3.2 percent.

The forecasts were published in the minutes of the last meeting of the Federal Open Market Committee on October 28-29.