In its updated economic projections, the Federal Reserve showed that the median view of the appropriate fed funds rate is seen at 2.4% at the end of 2019, unchanged when compared to the previous release. The greenback, which came under a renewed selling pressure amid the dovish tone in the policy statement, continues to weaken ahead of Chairman Powell’s press conference.
Key highlights from the updated economic projections (via Reuters)
“Median forecast of Fed policymakers is for no change in rates in 2019 but nearly half see lower rates.”
“One Fed policymaker sees one rate cut in 2019 and seven see two rate cuts; eight see rates steady and one sees a rate hike.”
“Fed’s median view of fed funds rate at end-2020 2.1% (prev 2.6%).”
“Fed’s median view of fed funds rate at end-2021 2.4% (prev 2.6%).”
“Fed’s median view of fed funds rate in longer run 2.5% (prev 2.8%).”
“Fed sees economic growth slightly stronger in 2020, jobless rate and inflation seen slightly lower, compared to march projections.”
“Median Fed long-run forecasts – GDP growth 1.9% (prev 1.9%); jobless rate 4.2% (prev 4.3%); PCE price index 2.0% (prev 2.0%).”
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