FOMC economic projections: Forecasts unchanged for inflation, GDP over forecast horizon

In its updated economic projections, the Federal Open Market Committee (FOMC) revealed that it kept forecasts for inflation and the Gross Domestic Product (GDP) unchanged over the forecast horizon.

Key takeaways

"Median view of appropriate fed funds rate at the end of 2019 is at 1.6% (previous 1.9%)."

"Median view of fed funds rate at the end of 2020 is at 1.6% (previous 1.9%)."

"Median view of fed funds rate at the end of 2021 at 1.9% (previous 2.1%)."

"Median view of fed funds rate at the end of 2022 at 2.1% (previous 2.4%)."

"Median view of fed funds rate in the longer run at 2.5% (previous 2.5%)."

"Median forecast of Fed policymakers is for no change in rates in 2020, 13 of 17 see rates unchanged, four see one rate hike."

"Median forecast of Fed policymakers is for one rate hike in each 2021 and 2022 but individual forecasts vary widely."

"Median Fed long-run forecasts: GDP growth at 1.9% (previous 1.9%); jobless rate 4.1% (previous 4.2%); PCE Price Index 2.0% (previous 2.0%)."