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9/20/2023, 8:02 PM (Source: TeleTrader)
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Fed sees interest rate at around 5.1% at end of 2024

The United States Federal Reserve's Federal Open Market Committee (FOMC) Summary of Economic Projections showed on Wednesday that policymakers expect the federal funds rate to stand at between 5% and 5.25% at the end of 2024. In June, they expected it to stand at between 4.5% and 4.75%.

The projection for the main interest rate in 2023 remained at around 5.6% while the estimate for 2025 was raised by 50 basis points to around 3.9%.

The core PCE (personal consumption expenditures) inflation forecast in 2023 was lowered by 0.2 percentage points to 3.7%, while the headline PCE inflation projection had a 0.1 percentage point increase to 3.3%. The estimate concerning the unemployment rate declined by 0.3 percentage points to 3.8%. The GDP growth forecast for 2023 was revised 1.1 percentage point higher to 2.1%. Most projections for 2024, 2025, 2026 and the long run were little changed from the June estimate.

Baha Breaking News (BBN) / MS