The Fed also released the Projections for GDP, Employment and PCE Inflation. Below is a look at the estimates and comparison to the June estimates. Red shows a decline form June. Yellow is unchanged and Green is an increase from the estimates in June – when the last estimates were provided by the Fed.
The GDP shows that growth estimates are lower for 2014 compared to the last estimates done in June. The GDP Central Tendency estimate for 2104 is for 2.0-2.2% compared to 2.1-2.3%.
For 2015, the GDP is also expected to be lower with the estimate of the central tendency estimate down to 2.6%-3% from 3.0%-3.2% in June. In 2016 and 2017, for what it is worth, the estimates for 2016 are lower, but 2017 shows an increase.
For Employment, the Fed sees a slightly lower to unchanged readings for the rate going out to 2017 when compared to the estimates in June
Finally, regarding PCE inflation, the estimates compared to June, show that the estimates for the years going forward narrow between the low and the high, but remain below the 2% level.
Overall, growth projections are lower but the general gist is steady growth, with steady employment gains and low inflation. What is there to be worried about?
The Fed Projections for GDP, Employment and PCE Inflation
