New FOMC projections see lower inflation, lower growth in 2014


The updated FOMC economic projections show a more slightly dovish tilt, with 2014 PCE inflation now expected at 1.3-1.8% vs. 1.4-2% for the June estimate. The 2014 GDP estimate is narrowed and lowered, now at 2.9-3.1% vs. 3.0-3.5% in June. The 2014 unemployment rate is now seen at 6.4-6.8% from 6.5-6.8%.

12 FOMC members see the first hike in the Fed Funds rate as coming in 2015, with 3 seeing it in 2014, and 2 in 2016. This compares to June when 14 saw the first hike coming in 2015, 3 in 2014, 1 this year, and 1 in 2016 (2 less voters this go-round).

The 10-year Treasury yield is now down to 2.75%.

Earlier: Markets rise as no taper announced.

Full FOMC statement.

Bernanke press conference begins at 2:30 ET (webcast).

Comments (8)
  • wmateri
    , contributor
    Comments (571) | Send Message
     
    And, of course, the Fed has an outstanding record of economic predictions.
    18 Sep 2013, 02:27 PM Reply Like
  • mobyss
    , contributor
    Comments (2411) | Send Message
     
    "Subprime is contained"
    18 Sep 2013, 02:27 PM Reply Like
  • apberusdisvet
    , contributor
    Comments (3062) | Send Message
     
    just more kicking of the can; a can that's starting to disintegrate more rapidly now that 535 have firmly decided that it's time for every man (or woman) to steal as much as possible before the end, instead of serving the American people.
    18 Sep 2013, 02:37 PM Reply Like
  • financeminister
    , contributor
    Comments (1146) | Send Message
     
    Mr president, is this what you meant by "spread the wealth"? my stocks are doing great. How about your fan base? are they in a recovery like some of us benefitting from this stimulus for the stock market?
    18 Sep 2013, 03:00 PM Reply Like
  • racchole
    , contributor
    Comments (392) | Send Message
     
    Wow, one of the best comments I've seen on SA.
    18 Sep 2013, 03:25 PM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1431) | Send Message
     
    Is the main reason why I'm focusing more on ramping up my paper wealth (IRAs, 401k's), rather than leaving my present employer for a better paying job which are relatively non-existent these days, given the job market s*&ks so bad.
    18 Sep 2013, 06:03 PM Reply Like
  • MLP Trader
    , contributor
    Comments (1021) | Send Message
     
    But I though QE was such a success. Why do we still need it if it has been so successful?
    18 Sep 2013, 03:47 PM Reply Like
  • june1234
    , contributor
    Comments (3877) | Send Message
     
    Markets now see the Fed as trapped. Doesn't matter if/when Fed tapers it only matters if/when markets think taper. A 20% collapse in bond funds since June occurred after Fed announced a taper that never happened for the Fall
    19 Sep 2013, 08:25 AM Reply Like
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