It also forecasts higher unemployment and lower inflation than before.
Meanwhile, it has emerged that the US economy grew faster than first thought in the third quarter of this year, at an annualised rate of 2.5%.
This was revised up from an initial estimate of just 2%, the Commerce Department said.
Earlier this month, the US Federal Reserve said it would buy $600bn (£373bn) of US government debts in order to try to lower long-term interest rates and thereby boost the economic recovery.
Meanwhile, the latest data from the Commerce Department on Tuesday showed growth for the July-to-September period this year was much stronger than previously thought.
The 2.5% revised figure was up from an earlier 2% annualised growth estimate.
The data comes weeks after the Fed meeting, for which minutes have only just been released, suggesting that the Fed’s own estimates may now have to be raised again in light of the new data.