At the conclusion of its Federal Open Market Committee (FOMC) meeting this afternoon, the Federal Reserve said it would begin open-ended quantitative easing while also extending its guidance for low interest rates.
In other words, the Fed will do everything it can to keep borrowing costs as low as possible until the economy starts growing at a healthy clip.
The Fed’s announcements today also included its new forecasts for U.S. economic growth.
It upgraded forecasts for real 2013 GDP growth to 2.5-3.0 per cent from 2.2-2.8 per cent. For 2014, the Fed raised growth estimates to 3.0-3.8 per cent from 3.0-3.5 per cent.
Below, forecasted GDP through 2015.
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