The United States Federal Reserve System (FRS) has downgraded the country’s GDP forecast for 2021. This became known on Wednesday, December 15.
At the same time, the Fed improved its unemployment forecast and raised inflation expectations; a document with forecasts was published on the regulator’s website.
The forecast for US GDP growth for 2021 was downgraded to 5.5% from 5.9% in September, the forecast for unemployment was improved to 4.3% from 4.8%, for inflation – it was raised to 5.3% from 4.2% in September.
At the same time, for 2022, the forecast for GDP growth was improved from 3.8% to 4%, expected in September, for unemployment – from 3.8% to 3.5%. The inflation forecast has been raised from 2.2% to 2.6%.
The forecast for core inflation (seasonally adjusted) for 2021 was raised to 4.4% from 3.7%, and for 2022 – to 2.7% from 2.3%.
On November 29, Fed Chairman Jerome Powell warned that the spread of the Omicron strain of COVID-19 poses a threat to the US economy: it could lead to lower employment rates and fuel inflation, CNBC reported. According to him, “concern about the virus could lead to people being afraid to go to work, leading to higher unemployment and disruption of supply chains.”
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
