One rate hike is predicted this year by the summary of Economic Projections, released by the Fed Wednesday, and the fed funds rate target is seen at just over 1.00% at the end of next year.
Ten of the 17 participants see the appropriate monetary policy at 0.625% at the end of this year and seven see it at 1.125% by the end of 2017, eventually rising to 3% in the long run.
The range for this year runs from three participants calling for no hikes this year (0.375% rate) to one seeing a 1.125% rate at the end of this year.
Next year is more spread out, with two projections of 0.625% (one hike) to one of 2.125%. The mean for 2018 is just under 2%, with 7 participants seeing a 1.875% rate.
GDP projections generally call for growth near 2%, 1.8% this year, down from the June estimate, 2% for the next two years and 1.8% in 2019. Unemployment is seen slightly below 5% and inflation is seen rising near 2% by 2018.
