ECB’s Nagel: ECB Is Getting ‘Continuously Closer’ To 2% Inflation Target

In conjunction with the Federal Open Market Committee (FOMC) meeting held on March 19–20, 2024, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2024 to 2026 and over the longer run. Each participant’s projections were based on information available at the time of the meeting, together with her or his assessment of appropriate monetary policy—including a path for the federal funds rate and its longer-run value—and assumptions about other factors likely to affect economic outcomes. The longer-run projections represent each participant’s assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy. “Appropriate monetary policy” is defined as the future path of policy that each participant deems most likely to foster outcomes for economic activity and inflation that best satisfy his or her individual interpretation of the statutory mandate to promote maximum employment and price stability. post: Fed’s Median Rate Forecast End-’24: 4.6% [Prev. 4.6%] Fed’s Median Rate Forecast End-’25: 3.9% [Prev. 3.6%] Fed’s Median Rate Forecast End-’26: 3.1% [Prev. 2.9%] Fed’s Median Rate Forecast Longer-Run: 2.6% [Prev. 2.5%] post: Fed Officials See 2.4% Inflation at End of 2024, 2.2% at End of 2025, 2.0% at End of 2026 Fed Officials See 2.6% Core Inflation at End of 2024, 2.2% at End of 2025, 2.0% at End of 2026 Fed Officials See 4% Unemployment at End of 2024, 4.1% at End of 2025, 4% at End of 2026 post: FED DOT PLOT pic.twitter.com/nV5pMixo9j post: <=USD>:FED POLICYMAKERS UPGRADE 2024 GDP GROWTH FORECAST TO 2.1% FROM 1.4%, SEE UNEMPLOYMENT RATE AT 4.0% VS 4.1% IN DEC. PROJECTION