Fed median projection for end 2024 Federal funds rate rises to 5.1%

The Federal Reserve released the economic projections of Federal Reserve Board members and Federal Reserve Bank presidents under their individual assessments of projected appropriate monetary policy, sometimes referred to as the “dot plot,” which shows that the group’s median forecast now calls for a Fed funds rate of 5.1% at the end of 2024, which is up from the prior projection of 4.6% from March. The “central tendency” of the group, which excludes the three highest and three lowest projections for each variable in each year, shows the projected Federal funds rate for the end of 2024 at 4.9%-5.4%. The group’s median forecast now calls for a Fed funds rate of 4.1% at the end of 2025, up from a prior view of 3.9% at the end of that year.