Here are a few takeaways from the latest Fed projections and interest rate dot plot.
- Real GDP expectations have again been lowered. Real GDP projections are now lower for 2015, 2016 and 2017
- The unemployment rate projection has been lowered for 2015, 2016, and 2017 as well.
- The projections for the headline PCE have been cut nearly in half for 2015
- Core-PCE projections have been lowered slightly for 2015 and 2016.
- The interest rate dot plot is forecasting lower rates in 2015, 2016, and 2017 than previously projected in December based on where the majority of dots are congregating. A majority of dots are huddled between 50-75 basis points for 2015. In December, A majority of dots were huddled around 75-125 basis points. Similarly, 2016 interest rate expectations have been lowered from around 200 basis points to 150-175 basis points.
Latest Fed Economic Projections
Latest Dot Plot
December's Dot Plot