New Lower Fed Long-Term Targets: Employment, Inflation, GDP & Rates
The Fed is going to continue on its dual-mandate of inflation and employment as it stated that it will take a balanced approach to maintain price stability and to promote employment. While inflation targets are being set at 2% longer-term,…
The core inflation (ex-food and energy) projections are:
- 1.5% to 1.8% in 2012
- 1.5% to 2.0% in 2013
- 1.6% to 2.0% in 2014
The headline inflation rate projections are as follows:
- 1.4% to 1.8% in 2012
- 1.4% to 2.0% in 2013
- 1.6% to 2.0% in 2014
For Jobless rate expectations, the new projections are as follows:
- 8.2% to 8.5% in 2012
- 7.4% to 8.1% in 2013
- 6.7% to 7.6% in 2014
Here is the U.S. GDP expectation ranges:
- 2.2% to 2.7% in 2012
- 2.8% to 3.2% in 2013
- 3.3% to 4.0% in 2014
Here is the expectation ranges for when the first rate hikes will come up:
- 2 of 17 officials: sometime in 2016
- 4 of 17 Officials: sometime in 2015
- 11 of 17 Officials: sometime in 2014 Or Later
- 3 of 17 Officials: sometime In 2013
- 3 of 17 Officials: sometime In 2012
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.