FOMC holds the line despite more upbeat outlook

The FOMC made upward revisions to their GDP and inflation outlook and lowered its estimates of the unemployment rate, but kept its projections of the policy rate at the zero lower bound at least until 2023.

Key points

• Key points:
• Median projections highlight a more positive economic outlook
• However, employment and inflation are still a long way from Fed’s goals
• Current inflationary pressures will prove transitory
• The Fed reassured markets that it is not ready to raise interest rates
• Fed is not concerned about the recent increase in long-term interest rates

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