Federal Reserve officials signaled Wednesday that they now see the economy requiring higher interest rates than previously thought to tame inflation.
Although Fed officials still think they will authorize three rate cuts later this year, they pared back expected rate cuts in the following years and slightly raised their expectations for their benchmark policy rate over the longer run.
The Fed releases the projections of officials for growth, unemployment, inflation, and core inflation four times each year. In addition, the officials pencil in where they think the Fed’s benchmark federal funds rate will be at the end of the current year, the end of the following two years, and over the longer-run.
The Fed presents those projections in a variety of ways in its Summary of Economic Projections. The summary includes a calculation of the median forecast and the range of forecasts….
