WASHINGTON (6/18/13)--The Federal Reserve will release its most recent forecast of growth, inflation and unemployment at the conclusion of its Federal Open Market Committee (FOMC) monthly policy meeting today and Wednesday.
On average, private-sector economists predict the economy will grow 2.3% in 2013 and 2.8% in 2014, according to The Wall Street Journal's Monthly Survey. However, the Fed is more upbeat, forecasting roughly 2.6% growth this year and 3.2% next year, in its most recent growth projections (The Wall Street Journal June 17).
Although Fed officials are not expected to alter their $85-billion-per-month bond-buying program--launched to boost national growth by keeping long-term interest rates down and boosting asset prices--what they indicate about the economy will transmit key signals about what they likely will do in the future, the Journal said.
If the economy continues to show signs of improvement, the Fed could begin to cut the amount of monthly bond purchases in the next few months, Fed Chairman Ben Bernanke said in recent congressional testimony, the Journal noted.
News Now will provide coverage of the FOMC statement at the conclusion of its meeting Wednesday.