Fed maintains dovish stance despite upgrading 2021 US growth to 6.5%

Fastest economic expansion since 1984 expected

Anna Fedorova
Fed remains dovish

Fed remains dovish

Federal Reserve officials took a dovish stance in March's FOMC meeting yesterday, signalling that interest rates are likely to remain unchanged until 2024, despite a significant upgrade to US growth forecasts.

The Fed increased its US growth expectations for the year to 6.5% from the 4.2% forecast in December, which would mark the fastest economic expansion since 1984, on the back of fiscal stimulus and an accelerating vaccine rollout. However, over the next two years, real GDP growth is expected to drop to 3.3% and then 2.2%, respectively. Officials also expect unemployment to drop from 6% to 3.5% by 2023, while core personal consumption expenditure inflation is expected to rise beyond the 2% target to 2.2% this year, before dropping back down to 2% in 2022 and 2.1% in 2023. Despite thi...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week