The Federal Reserve revised upward its economic forecast for the United States on Wednesday. The projection for median real gross domestic growth (GDP) increased by 2.8 percent versus 2.7 percent. While figures for 2019 and 2020 remained steady and the longer run median estimate was unchanged at 1.8 percent. According to the Fed’s statement, the economic activity is also increasing at a solid pace which indicates development from the moderate rate shown in the previous statement. Also on Wednesday, the central bank lifted its short-term interest rate benchmarks by a quarter point and showed hints about the possible two more rate hikes this year. Moreover, policymakers had reduced their outlook for jobless rate. The calculated median for this year had declined to 3.6 percent, lower from 3.8 percent. While in 2019 and 2020, the median estimate for unemployment is expected to decrease to 3.5 percent against the initial 3.6 percent. Inflation is predicted to grow by 2.1 percent in 2018 until 2020.
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