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

Eren Sengezer FXStreet

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).

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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.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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