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17 Jun 2013
Flash: FOMC to also give economic projections until 2015 – Deutsche Bank
FXstreet.com (New York) - This week's FOMC will be interesting from the perspective that the Fed will be providing an update on economic projections for 2013-2015.
Indeed, the WSJ's Jon Hilsenrath was back on the newswires on Sunday evening suggesting that the evolution of these forecasts could provide a strong clue as to the Fed's tapering intentions. The Fed's latest projections, made in March this year, saw real GDP growth of around 2.6% for 2013 and 3.2% for 2014.
In terms of unemployment, the Fed projected a rate of around 7.4% in 2013, improving to around 6.9% in 2014. If and how these forecasts change could send an important signal about the Fed's near term intentions. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “If the Fed maintains confidence in their economic forecasts, it could signal they think they're on track to begin pulling back on QE later this year.”
Indeed, the WSJ's Jon Hilsenrath was back on the newswires on Sunday evening suggesting that the evolution of these forecasts could provide a strong clue as to the Fed's tapering intentions. The Fed's latest projections, made in March this year, saw real GDP growth of around 2.6% for 2013 and 3.2% for 2014.
In terms of unemployment, the Fed projected a rate of around 7.4% in 2013, improving to around 6.9% in 2014. If and how these forecasts change could send an important signal about the Fed's near term intentions. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “If the Fed maintains confidence in their economic forecasts, it could signal they think they're on track to begin pulling back on QE later this year.”