The Fed’s New Interest Rate Projections Are Out!

Markets are rallying and gold is spiking, right after the Federal Reserve released the long-term interest rate projections of its Governing Board members.

We’re reading through the release right now. Here are the points that initially struck us:

  • Eleven of 17 Fed officials see the main rate above 0.25% in 2014. That means six still predict that it will be at this exceptionally low level.
  • FOMC is not setting a long-run goal for unemployment in this release.
  • Most members see monetary policy firming by 2014, with only three thinking it should tighten in 2012.
  • Two members don’t see FOMC hiking rates until 2016.


Here’s a chart showing projections from all members of the Governing Board:


[credit provider=”Federal Reserve”]


Read the full release here (pdf).

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