Federal Reserve officials raised their
The rate will be at 3.75% at the end of 2017, the Fed predicted Wednesday for the first time as it included that year in its Summary of Economic Projections. That is the same as Fed officials' longer-run estimate. The median estimate in June for the long-run fed funds rate was also 3.75%.
The central tendency estimate for the longer-run growth rate ranged from 2% to 2.3%, compared with 2.1% to 2.3% in June. A year ago, Fed officials forecast the economy's potential growth rate at around 2.2% to 2.5%.
Fed officials' central tendency estimates for 2017 showed gross domestic product expanding at 2.3% to 2.5%, with the inflation, measured by the personal consumption expenditures price index, rising by 1.9% to 2%. The unemployment rate will average 4.9% to 5.3% in the final quarter of that year.
The nation's GDP will rise 2.6% to 3% in 2015, the projections showed, and 2.6% to 2.9% in 2016. The unemployment rate will range from 5.4% to 5.6% at the end of 2015 and 5.1% and 5.4% at the end of 2016, the Fed said.
