An optimistic forecast not shared widely by Wall Street economists
Fed sees inflation topping 5% in 2022 and then falling rapidly
The central bank lifted its benchmark short-term rate by 75 basis points to a range of 1.5% to 1.75%.
The Fed also plans to raise the rate to as high as 3.8% by 2023
The consumer price index jumped 1% in May to push the increase over the past year to a 40-year high of 8.6%.
The Fed prefers another measure known as the personal consumption expenditures index as a better gauge of inflation. The PCE index has also risen a sharp 6.3% as of the 12 months ended in April.
By the end of this year, the Fed predicts a 5.2% rate of inflation as measured by the PCE index.
The Fed then expects inflation to slow sharply to 2.6% by the end of 2023 and 2.2% by 2024 — an optimistic forecast not shared widely by Wall Street economists.
MarketWatch 15 June 2022
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