projections
The Fed outlook on end-2022 fed funds rate raised to 1.9% from 0.9% in December. For 2023, the estimate rose to 2.8% from 1.6% previously.
11 of 16 Fed policymakers expect interest rates to move above the neutral rate of 2.4% by the end of 2023, the new dot plot showed.
The outlook for 2024 was raised to 2.8% from 2.1% in December.
The long-term fed funds rate view was lowered to 2.4% from 2.5% in December.
Economic Forecasts
The Fed forecasts that tunemployment rate will end 2022 at 3.5%unchanged from its previous estimate, and will end 2023 at the same level and then rise to 3.6% in 2024 before returning to its normal long-term level of 4.0%.
The Federal Reserve expects a PCE inflation of 4.3% in 2022 (revised upward from the 2.6% estimate in December), 2.7% in 2023 and 2.3% in 2024, before returning to 2.0% in the long term.
Source: Fx Street
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