Updated Fed Projections

Here are the updated projections from the Fed. They’re a bit more hawkish since December.

Nine of the 17 Fed officials who submitted projections indicated three rate increases would be appropriate in 2017, up from six in December. Only three officials saw the need for fewer than three moves this year versus six in December.

The latest projections are a sign that officials believe they are moving towards a faster pace of rate increases than in the past few years. The Fed began 2015 expecting to raise rates three times and 2016 expecting to raise them four times. But they ended up having to backtrack on those projections and made only one move in each of those years.

Fed Chairwoman Janet Yellen indicated in a March 3 speech that she expects a faster pace than in those earlier years.

The Fed sees two more rate hikes this year. For next year, they see three more. The 2018 outlook was just one vote short of having the median at four hikes.

The Fed sees hitting the long-run rate of 3% by 2019.

Posted by on March 15th, 2017 at 2:17 pm

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