Fxstreet.com (Barcelona) - Federal Reserve's latest assessment of economic conditions, which have been released Wednesday, showed that the contraction in U.S. economic output deepened in the first two months of the year with no turnaround expected anytime soon.

The Fed said in what is known as the Beige Book, which summarizes largely anecdotal economic conditions in advance of the March 17-18 Federal Open Market Committee, Suggest that national economic conditions deteriorated further in January through late February.

The Beige Book supports Wall Street's views on the outlook. U.S. gross domestic product plunged 6.2%, at an annual rate, during the fourth quarter, the worst slump since the 1982 recession. Economists at Goldman Sachs expect GDP to fall 7% this quarter and 3% in the second quarter, pushing the unemployment rate higher.