Fed: Median forecast of policymakers is for three rate hikes in 2018

Below are the key highlights (via Reuters) from the updated economic projections published by the Federal Open Market Committee following its 2-day meeting. Janet Yellen, Chair of the Board of Governors of the Federal Reserve System,  is scheduled to deliver her comments on the monetary policy in a press conference at 19:30 GMT.

Median view of appropriate federal funds rate at end-2018 2.125 (prev 2.125 pct): end-2019 2.688 (prev 2.688 pct) end-2020 3.063 (prev 2.875) longer-run 2.750 pct (prev 2.750 pct).

Median forecast of Fed policymakers is for three rate hikes in 2018.

Median Fed forecasts 2017 - gdp growth 2.5 pct (prev 2.4 pct), unemployment rate 4.1 pct (prev 4.3 pct), core inflation 1.5 pct (prev 1.5 pct).

Median Fed forecasts 2018 - gdp growth 2.5 pct (prev 2.1 pct), unemployment rate 3.9 pct (prev 4.1 pct), core inflation 1.9 pct (prev 1.9 pct).

Median Fed forecasts 2019 - gdp growth 2.1 pct (prev 2.0 pct), unemployment rate 3.9 pct (prev 4.1 pct), core inflation 2.0 pct (prev 2.0 pct).

Median Fed forecasts 2020 - gdp growth 2.0 pct (prev 1.8 pct), unemployment rate 4.0 pct (prev 4.2 pct), core inflation 2.0 pct (prev 2.0 pct).

Median Fed long-run forecasts - jobless rate 4.6 pct (prev 4.6 pct); gdp growth 1.8 pct (prev 1.8 pct)

Key notes

When is the Fed interest rate decision and how could it affect DXY?

The Federal Reserve will announce its decision at 19:00 GMT. At the same time, updated macroeconomic projections of FOMC officials will be released, including the “dot plot” (interest rate estimations). Janet Yellen will hold a press conference at 19:30 GMT (the last post-meeting press conference from her). 

FOMC Preview: 11 major banks expectation from December meeting.

We are closing into the FOMC’s December policy decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 11 major banks along with some thoughts on the future course of Fed’s action.

About the FOMC statement 

Following the Fed's rate decision, the FOMC releases its statement regarding monetary policy. The statement may influence the volatility of USD and determine a short-term positive or negative trend. A hawkish view is considered as positive, or bullish for the USD, whereas a dovish view is considered as negative, or bearish.

About FOMC economic projections 

This report, released by Federal Reserve, includes the FOMC's projection for inflation and economic growth over the next 2 years and, more importantly, a breakdown of individual FOMC member's interest rate forecasts.