The US Federal Reserve's updated Summary of Economic Projections revealed on Wednesday that half of the policymakers (9) see a lift-off in the fed funds rate from zero in 2022, compared to seven policymakers in June's publication.
Follow our live coverage of the FOMC decision and the market reaction.
Market reaction
The USD's reaction was largely muted and the US Dollar Index was last seen trading flat on the day at 93.20.
Key takeaways from Summary of Economic Projections
"Fed policymakers see first rate hike in 2022: median forecast in Summary of Economic Projections."
"Half of Fed policymakers see lift-off in fed funds rate from zero in 2022, vs 7 of 18 in June forecast; all but one see liftoff by end-2023 (vs 13 in June)."
"Fed's median view of fed funds rate at end-2022 0.3% (prev 0.1%)."
"Fed's median view of fed funds rate at end-2023 1.0% (prev 0.6%)."
"Fed's median view of fed funds rate at end-2024 1.8%."
"Fed's median view of fed funds rate in longer run 2.5% (prev 2.5%)."
"Fed sees US GDP growing 5.9% in 2021 (prev 7.0%), 3.8% in 2022, 2.5% in 2023; 2.0% in 2024; median long-run forecast at 1.8% (prev 1.8%)."
"Fed sees year-end US jobless rate at 4.8% in 2021 (prev 4.5%), 3.8% in 2022, 3.5% in 2023; 3.5% in 2024; median long-run forecast at 4.0% (prev 4.0%)."
"Fed sees PCE inflation at 4.2% in 2021 (prev 3.4%), 2.2% in 2022, 2.2% in 2023; 2.1% in 2024."
"Fed sees Core PCE inflation at 3.7% in 2021 (prev 3.0%), 2.3% in 2022, 2.2% in 2023; 2.1% in 2024."
"Fed policymakers see inflation running higher than 2% goal through end-2024: median forecast in Summary of Economic Projections."
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