![]() ![]() The committee reduced its forecast for economic growth this year, seeing GDP rising 5.5% for 2021, compared with the 5.9% indicated in September. ![]() That vote came even as the statement reaffirmed that the Fed's benchmark overnight borrowing rate would stay near zero "until labor market conditions have reached levels consistent with the Committee's assessments of maximum employment." The "dot plot" of individual members rate expectations indicated that just six of the 18 FOMC members saw fewer than three increases next year, and no members saw rates staying where they are now, anchored near zero. However, members came out on the hawkish side of policy moves, with members solidly leaning toward rate hikes. The statement noted that "job gains have been solid in recent months, and the unemployment rate has declined substantially." For 2022, the expectation is now 2.6% for headline and 2.7% for core, both up from September.Īt the same time, the unemployment rate projection for 2021 came down to 4.3% from 4.8% in September. The committee sharply ratcheted up its inflation outlook for 2021, pushing it to 5.3% from 4.2% for all items and to 4.4% from 3.7% excluding food and energy. ![]() "Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation," the statement said. ![]()
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