Most members of the United States Federal Reserve's Federal Open Market Committee (FOMC) expect the federal funds rate to stand at between 5.5% and 5.75% at the end of 2023, the FOMC Summary of Economic Projections showed on Wednesday. The latest projection is 0.5 percentage points higher than the previous estimate posted in March.
In 2024, the interest rate will stand at between 4.25% and 4.5% before falling to between 3% and 3.5% at the end of 2025 and to 2.5% in the long run, according to most policymakers.
The 2023 core PCE (personal consumption expenditures) inflation projection is at 3.9%, 0.3 percentage points higher compared to the March forecast, while headline PCE inflation estimates were little changed. The unemployment rate is expected to stand at 4.1% this year, 0.4 percentage down from the previous projection, while the 2023 GDP growth estimate was revised 0.6 percentage points higher to 1%.
