The Federal Reserve appears to expect theThe new economic projections released by the Fed on Wednesday showed Fed officials now expect a lot more growth this year and in subsequent years but only modestly higher inflation.Fed Chairman Jerome Powell
for this year was raised to 2.1 percent from the June projection of just one percent. The projection for next year’s economic growth is now 1.5 percent, up from 1.1 percent, and they held on to the 1.8 percent projection for 2025 and the longer run.how far the Fed’s GDP projections have traveled When the forecast was raised to one percent in June, the Fed was playing catch up. The economy had grown at a two percent pace in the first quarter of the year, consumer spending was still very strong, and unemployment had stayed ultra low. Even still, Fed officials took a pretty negative view of our economic prospects, lowering the median forecast for 2024 to 1.1 percent from 1.2 in March. This implied that anyThat’s not the case this time. Theto 1.5 percent, up from 1.1 percent.
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