The Federal Reserve’s March forecast of a 1.7% growth rate has been revised down to 1.4%, amidst prevailing uncertainty regarding the impact of tariffs imposed by President Donald Trump on the economy.
For 2026, the U.S. Gross Domestic Product (GDP) is projected to grow by 1.6%, also lower than the March forecast of 1.8%, with the rate holding at 1.8% for 2027.
Regarding inflation, the Fed now expects it to settle at 3% this year and 2.4% next year, compared to March estimates of 2.7% and 2.2%, respectively.
As for the unemployment rate, the central bank slightly revised its forecast upward from 4.4% to 4.5% in 2025 and from 4.3% to 4.5% in 2026, before dropping back to 4.4% in 2027.
At this meeting, the Fed once again decided to keep the benchmark rates in the 4.25%-4.5% range for the fourth consecutive time, despite calls from Donald Trump for a rate cut.
