The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Sunday, June 20, 2021. The White House on Friday reiterated opposition to indexing the gasoline tax to inflation to help pay for an infrastructure plan, raising new questions about the viability of a bipartisan compromise emerging in the Senate.
(Bloomberg) -- Here are key takeaways from the Federal Reserve's interest-rate decision and economic forecasts on Wednesday:
- Federal Open Market Committee votes unanimously to leave benchmark rate unchanged — as expected — in target range of 5.25%-5.5%, a 22-year high
- “Dot plot” of rate projections shows policymakers still foresee one more hike this year, but 2024 and 2025 rate projections each rose by a half-percentage point, a signal the Fed expects rates to stay higher for longer
- Twelve of 19 policymakers on the FOMC expect one more rate hike this year to be appropriate; the remaining seven favor holding rates steady
- Median projection for economic growth in 2023 jumps to 2.1% from 1% in June; officials significantly reduce unemployment forecasts and now expect jobless rate to peak at 4.1%, rather than 4.5%
- Statement repeats prior language saying officials are considering “the extent of additional policy firming that may be appropriate”; Fed acknowledges job gains have “slowed” but says they “remain strong”
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For Bloomberg's TOPLive blog on the Fed decision and press conference, click here
--With assistance from Craig Torres.
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