Tue, Oct 26, 2021 @ 04:50 GMT
HomeLive CommentsFed dot plot shows more members favor rate hike in 2022

Fed dot plot shows more members favor rate hike in 2022

In Fed’s new median economic projections, comparing to June’s projection, the outlook in 2021 looks weaker with lower GDP growth projection, and higher unemployment rate and core PCE inflation. But a stronger bounce back is projected in 2022.

Meanwhile, the median projection now shows 1 rate hike in 2022. In the dot plot, 9 members penciled in one hike or more in 2022, versus 8 members expecting no change.

GDP growth:

  • 2021 downgraded from 7.0% to 5.9%
  • 2022 upgraded from 3.3% to 3.8%
  • 2023 upgraded from 2.4% to 2.5%
  • 2024 at 2.0% (new)

Unemployment rate:

  • 2021 raised from 4.5% to 4.8%
  • 2022 unchanged at 3.8%
  • 2023 unchanged at 3.5%
  • 2024 at 3.5% (new).

Core PCE inflation:

  • 2021 upgraded from 3.0% to 3.7%
  • 2022 raised from 2.1% to 2.3%
  • 2023 rased from 2.1% to 2.2%
  • 2024 at 2.1% (new)

Federal funds rate:

  • 2021 unchanged at 0.1%
  • 2022 raised form 0.1% to 0.3%
  • 2023 raised from 0.6% to 1.0%

Full projections here.

Featured Analysis

Learn Forex Trading