The Summary of Economic Projections An update from the U.S. Federal Reserve revealed on Wednesday that half of policy makers see a rise in federal funds rate from zero in 2022, adding nine members compared to the seven who were betting on this scenario in June.
17 Fed members are contemplating a rate hike by the end of 2023 (up from 13 in June projections).
The Fed’s median projection of the fed funds rate at the end of 2022 has risen to 0.3% from 0.1%. This projection rises to 1% by the end of 2023 compared to 0.6% projected in June. By the end of 2024, this average projection amounts to 1.8%.
The Fed expects US GDP growth of 5.9% in 2021 (compared to the previous 7%), 3.8% in 2022, 2.5% in 2023 and 2.0% in 2024.
The entity predicts a Unemployment rate for the United States of 4.8% in 2021 (previous 4.5%), 3.8% in 2022, 3.5% in 2023 and 3.5% in 2024.
The Fed anticipates that the PCE inflation is 4.2% in 2021 (3.4% prior), 2.2% in 2022 and 2023, and 2.1% in 2024.
The entity points to an inflation of 3.7% underlying PCE in 2021 (previous 3.0%), 2.3% in 2022, 2.2% in 2023 and 2.1% in 2024.
Fed policymakers forecast inflation above the 2% target through the end of 2024.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.