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:
Photo: Federal Reserve
Read the full release here (pdf).