The Federal Reserve of the United States on Wednesday improved its economic projections for this year in the country and the members of its federal open market committee, the one that decides on monetary policy, now calculate a growth of the Gross Domestic Product of 1%, six tenths above its March forecast.
However, they have reduced the forecast for 2024 by one tenth, the year in which they now calculate that the economy will advance 1.1% compared to the 1.2% previously estimated. For 2025, it forecasts growth of 1.8%, one tenth higher than its previous forecast.
The economic predictions published by the Fed are an average of the estimates made by the members of the committee, the same ones who have decided this Wednesday not to raise interest rates. The same goes for calculations on unemployment or inflation.
The US central bank thus believes that inflation will continue to moderate this year to stand at 3.2%, and 2.5% in 2024, but it does not expect the desired target to be reached even in 2025, the year in which it calculates that inflation will be placed at 2.1%.
As for unemployment, the Fed is now estimating a smaller increase in the number of unemployed.
Thus, he foresees that the rate, which is currently at 3.7%, will close the year at 4.1%, compared to the 4.5% that he previously calculated. He thinks it will be at 4.5% in both 2024 and 2025.
Fed Chairman Jerome Powell will appear this afternoon to explain the rate hold decision and economic forecasts.
Source: EFE
Source: Gestion
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