Nearly all Federal Reserve officials expect the first rate hike next year, with only two dissenters thinking the first hike will be appropriate in 2016, and the officials lowered their median estimate for the federal funds rate at the end of 2015 to 1.125%, compared with 1.375% in September.
The rate will be at 3.625% at the end of 2017, the Fed predicted Wednesday, according to the Summary of Economic Projections. That is down from the 3.75% projection in the previous SEP.
The nation's GDP will rise 2.6% to 3% in 2015, the projections showed, and 2.5% to 3.0% in 2016. The unemployment rate will range from 5.2% to 536% at the end of 2015 and 5.0% and 5.2% at the end of 2016, the Fed said.
