Federal Reserve median forecast shows one more rate hike in 2026, rates unchanged in 2027

Odaily News: The Federal Reserve implemented its first rate hike in three years on the 17th, and its dot plot median forecast shows one rate hike this year and rates unchanged in 2027. New projections show rates will decline in 2028 and remain between 3.5% and 3.75% in 2029. Previously, in its June projections, the Fed expected a 25 basis point rate hike this year and one rate cut in 2027. The Fed also raised its longer-run federal funds rate forecast to 3.2%, compared with 3.1% in the June projection. Among the 19 policymakers, 18 submitted rate outlook projections, strongly suggesting that Fed Chair Warsh, as he did in June this year, did not provide specific projections. The Fed's projections also show that policymakers now expect inflation to be generally higher this year and in the coming years. (Jinshi)