The Federal Reserve expects three rate cuts of a quarter of a percentage point in 2024, for 75 basis points in 2024 and expects underlying (“core”) inflation to stand at 2.6% at the end of the year, against the 2.4% expected in December. This is what emerges from the “dot plot”, the graph that records the Fed bankers’ forecasts every three months. Inflation is then forecast at 2.2% in 2025, up from the previous estimate of 2.1%. , and 2% at the end of 2026, confirmed. The general inflation figure is seen at 2.4% at the end of the year, confirmed compared to three months ago, and at 2.2% and 2% in 2025 and 2026 respectively.
The Fed’s new projections predict that US GDP will grow by 2.1% in 2024 instead of the 1.4% previously forecast, while in 2025 and 2026 the estimate is 2%. The unemployment rate is expected to rise to 4% in 2024, 4.1% in 2025 and 4% in 2026. Inflation will be 2.4%, 2.2% in 2025 and 2.0% in 2026, while the ‘core’ one is expected at 2.6% this year, 2.2% in 2025 and 2% in 2026.