FOMC: Median forecast of Fed policymakers is for a total of four rate hikes in 2018

Below are the key takeaways, via Reuters, from the FOMC's updated economic projections.

  • Median view of appropriate federal funds rate at end-2018 2.375 pct (prev 2.125 pct); end-2019 3.125 (prev 2.875 pct): end-2020 3.375 (prev 3.375 pct) longer-run 2.875 pct (prev 2.875 pct).
  • Median forecast of Fed policymakers is for a total of four rate hikes in 2018.
  • Fed sees slightly higher 2018 GDP growth, lower unemployment in 2018-2020, higher inflation in 2018-19 vs previous forecast.
  • Median Fed long-run forecasts - GDP growth 1.8 pct (prev 1.8 pct); jobless rate 4.5 pct (prev 4.5 pct); PCE price index 2.0 (prev 2.0 pct).

Related articles

FOMC Preview: 8 major banks expectations from June meeting

We are closing into the FOMC’s June policy decision and as the clocks tick closer to the decision timing, following are the expectations as forecasted by the economists and researchers of 8 major banks along with some thoughts on the future course of Fed’s action.

US Dollar Index Technical Analysis: Greenback hammered down ahead of FOMC

The US Dollar Index (DXY) has lost about 40 cents after attempting to break above Tuesday’s high. Although the selling has been fairly intense, DXY is trying to find a support at the bull channel (black line). 

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.