Federal Reserve staff's economic growth forecasts accelerated compared to October.

According to Odaily Planet Daily, the Federal Reserve's economic outlook, as outlined in the meeting minutes, projects a slightly faster pace of real GDP growth through 2028 compared to the forecast prepared for the October meeting. This is primarily reflected in the anticipated greater support from financial market conditions and stronger expectations for potential output growth. After 2025, GDP growth is expected to remain above potential growth through 2028 as the negative impacts of high tariffs diminish and fiscal policy and financial market conditions continue to support spending. Consequently, the unemployment rate is expected to gradually decline after this year, reaching a level slightly below the staff's estimated natural rate of unemployment in 2027. Overall, staff's inflation forecasts for 2025 and 2026 are slightly lower than those presented at the October meeting, but their forecasts for 2027 and 2028 remain similar to previous projections.