The Fed's median rate forecast for the end of 2022: 3.4% vs. 1.9% in March forecast
The Fed forecasts PCE inflation at 5.2% in 2022, (previously 4.3%), 2.6% in 2023, 2.2% in 2024. The average long-term forecast remained at 2.0%.
The Fed forecasts GDP growth of 1.7% in 2022, up from 2.8% in the March forecast.
Five Fed officials predict that rates will exceed 4% in 2023. Rate cuts could begin in 2024.
The Fed's forecast shows unemployment at 3.7% in 2022, 3.9% in 2023, and 4.1% at 24.
Fed: balance sheet reduction comes at the announced pace; economic activity picked up after declining in the first quarter.
