Fed lowers 2014 GDP projection, but 2015 and 2016 hold

|By:, SA News Editor

Along with the policy statement, comes new economic forecasts from the Fed, and 2014 estimated GDP growth is cut to 2.1-2.3% from 2.8-3% (the weather). The projections for 2015 and 2016 GDP growth remain at 3-3.2% and 2.5-3%, respectively.

Even with a reduction in the 2014 GDP forecast, the Fed sees the unemployment rate range falling to 6-6.1% from 6.1-6.3% previously forecast. The 2015 UE rate estimate is lowered to 5.4-5.7% from 5.6-5.9%, and 2016 to 5.1-5.5% from 5.2-5.6%.

The 2014 core inflation forecast is lifted to 1.5-1.6% from 1.4-1.5%. 2015 is now 1.6-2% from 1.7-2%, and 2016 is 1.7-2.0% from 1.8-2.0%.

The "dots" are on page three of the report and - as earlier reported - they've moved up and to the right a bit, suggesting a slightly earlier/faster pace of rate hikes.

Janet Yellen's press conference (webcast) begins at 2:30 ET.