The FOMC members» new dot plot of the median
fed funds rate forecast is illustrative of the expectation for further rate increases in the months and years ahead.
Not exact matches
The
Fed's projections for this year show a median
forecast of 2.1 percent for the
funds rate, but eight officials are above the median (more than half of the committee).
Market Roundup US May
Fed Funds Target
Rate, 1.5 - 1.75 %, 1.5 - 1.75 %
forecast, 1.5 - 1.75 % previous US May
Fed Int On Excess Reserves, 1.75 %, 1.75 % previous US Apr Total Vehicle Sales, 17.15 mln, 17.10 mln...
In keeping with this added cautiousness, members of the FOMC revised down their median projections for the
Fed funds rate to 0.875 % by end - 2016 and 1.875 % by end - 2017, roughly equivalent to two hikes in 2016 (from four projected in December) and four in 2017, while keeping their economic
forecast broadly unchanged.
A chart showing the economic projections of Federal Reserve board members and Federal Reserve Bank presidents which includes
forecasts for: inflation, unemployment, gross domestic product, and
Fed funds rates.
The
Fed also indicated that it expects three more
rate escalations in 2018, with a few more after that, making the long - term
forecast for the federal
funds rate 2.75 %.
The bond market is rallying, anticipating falling
Fed funds rates, but not
forecasting rising inflation
rates.
Should these
forecasts come true, the
fed funds rate would peak at perhaps 3.5 percent for this cycle.
The graph below plots the
fed funds rate, along with the market's
forecast for the direction of
rates over the next two years.
Forecasts of when the
Fed might move and what the
Fed Funds rate might be at the end of 2015 will be revised to the hawkish side.
Using these
forecasts, the rule suggests an average
Fed Funds rate of 2.8 percent in the fourth quarter of this year.