The Fed boosts its outlook for the US economy, cuts inflation expectations

The Federal Open Markets Committee voted to keep its benchmark interest rate in a range of 1%-to-1.25% at the conclusion of its two-day meeting, as virtually everyone was expecting.

It also released its latest Summary of Economic Projections.

The Fed now expects real GDP to grow 2.2% to 2.5% in 2017, up from June’s projection of 2.1% to 2.2%. Its expectation for the unemployment rate to fall to 4.2% to 4.3% this year is unchanged.

The Fed’s inflation expectations, however, continued to slide. It now says core PCE will come in at 1.5% to 1.6% in 2017, down from prior expectations of 1.6% to 1.7%.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at