Federal Reserve:Meetings/2023 March 22: Difference between revisions

Federal Reserve:Meetings/2023 March 22 (view source)

408 bytes added , 22 March 2023

3,882

edits

@@ Line 76: / Line 76: @@
 <u>Assessment:</u> The fed recent data and release makes for the scenario that they will continue with their plan to keep rates higher for as long as they can, with no rate cuts in 2023, giving the inflation problem the priority at the moment.
 The markets continue to be skeptical of this result, pricing more than 1 rate cut in 2023.<ref>https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html</ref>
+=== Projections ===
+{| class="wikitable"
+|'''Variable'''
+|'''2023'''
+|'''2024'''
+|'''2025'''
+|'''Longer Run'''<ref>https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20221214.pdf</ref>
+|-
+|Change in real GDP
+|0.4
+|1.2
+|1.9
+|1.8
+|-
+|Unemployment rate
+|4.5
+|4.6
+|4.6
+|4
+|-
+| PCE inflation
+| 3.3
+|2.5
+|2.1
+| 2
+|-
+|Core PCE inflation
+|3.6
+| 2.6
+|2.1
+|
+|-
+|Federal funds rate
+|5.1
+|4.3
+| 3.1
+| 2.5
+|}
 === Notes ===
 - They wait for credit conditions to progress to be able to assess if more rate hikes are needed. Credit tightening could replace rate hikes in the future.