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Fed Predicts Higher Price Increases and Lower Growth
The Guardian
|March 20, 2025
Officials at the US Federal Reserve have cut their growth forecasts and raised projections for inflation as they kept interest rates on hold.
"Uncertainty around the economic outlook has increased," they said in a statement reflecting fears about the impact on the economy of Donald Trump's sweeping tariffs.
Policymakers at the Fed now expect prices to rise by an average rate of 2.7% this year, according to the estimates released yesterday, up from 2.5% previously.
They expect US gross domestic product to rise by 1.7% this year, down from an estimate of 2.1% in December. Officials also revised down their projections for growth in 2026 and 2027, to 1.8%.
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