Written by: Dr. David Kelly
As forecast for the unemployment rate. It is worth noting, however, that the expected, the Federal Reserve raised its target for the federal funds rate to a range of 1.75%-2.00% today. Both the language in its statement and its economic projections were more hawkish than in its May and March meetings respectively. However, markets should have fully anticipated this based on incoming data. In particular:
EXHIBIT 1: FOMC JUNE 2018 FORECASTS*
Source: Federal Reserve, J.P. Morgan Asset Management. Data as of June 13, 2018.
*Forecasts of 15 FOMC participations, median estimate.
** Green denotes an adjustment higher, red denotes an adjustment lower.
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