Below are the key takeaways, via Reuters, from the FOMC’s updated economic projections from the September 25-26 meeting.
- Fed still sees one more rate increase this year and three more in 2019.
- The Fed’s latest projections show the economy continuing at a steady pace through 2019, with gross domestic product growth seen at 2.5 percent next year before it slows to 2.0 percent in 2020 and to 1.8 percent in 2021, as the impact of the recent tax cuts and government spending fade.
- Inflation was forecast to hover near 2 percent over the next three years, while the unemployment rate is expected to fall to 3.5 percent next year and remain there through 2020 before rising slightly in 2021.
- The jobless rate is currently 3.9 percent.
Related articles
Fed press conference: Jerome Powell speech – Live Stream – Sep. 26.
Jerome Powell, Chairman of the Federal Reserve System, will be delivering his remarks on the monetary policy outlook at a press conference following the 2-day meeting of the Board of Governors. Powell’s speech today (September 26, 2018) will start at 18:30 GMT.
Fed to slow the pace of hikes in 2019 – ING.
Analysts at ING see the US economy facing more headwinds as we move into 2019.
About the FOMC statement
Following the Fed’s rate decision, the FOMC releases its statement regarding monetary policy. The statement may influence the volatility of USD and determine a short-term positive or negative trend. A hawkish view is considered as positive, or bullish for the USD, whereas a dovish view is considered as negative, or bearish.
About FOMC economic projections
This report, released by Federal Reserve, includes the FOMC’s projection for inflation and economic growth over the next 2 years and, more importantly, a breakdown of individual FOMC member’s interest rate forecasts.
Share
