The Federal Reserve's Summary of Economic Projections was changed slightly from the dot plot issued three months ago, with three 25 basis point rate hikes projected for next year.
Federal Open Market Committee participants' current assessment of appropriate monetary policy (as defined as the level picked by the most members) expects a rate between 0.50% and 0.75% at the end of 2016, between 1.25% and 1.50% at the end of 2017, and between 1.75% and 2% at the end of 2018, with a 3% rate longer term. The 2019 was spread out with no more than three participants targeting any amount.
In 2019, one participant sees a rate between 0.75% and 1% in 2019, one projects a rate between 2% and 2.25%, two each project rates between 2.25% and 2.50%, between 2.75% and 3%, 3%, between 3% and 3.25%, 3.25%, one between 3.50% and 3.75%, one between 3.75% and 4%, and three between 2.50% and 2.75%.
In September, FOMC participants' assessment of appropriate monetary policy expected a rate between 0.50% and 0.75% at the end of 2016, between 1% and 1.25% at the end of 2017, between 1.75% and 2% at the end of 2018, and between 2.5% and 2.75% at the end of 2019, with a 3% rate longer term.
The median fed funds rate projections are 0.6% at the end of 2016, 1.4% at the end of 2017, 2.1% at the end of 2018, and 2.9% at the end of 2019, with a 3% rate longer term.
In September, the median fed funds rate projections were 0.6% at the end of 2016, 1.1% at the end of 2017, 1.9% at the end of 2018, and 2.6% at the end of 2019, with a 2.9% rate longer term.
