Today, the Federal Reserve upped their projections for economic growth from last year’s projection of 4.2% to 7% this year. They also announced a projection of 4.5% unemployment which is substantially down from 6.3% at the end of the Trump administration%. 

Thanks to President Biden and Democrats, our economy is recovering and America is bouncing back.

The Fed raised its economic growth projection for this year to 7%, up from its 6.5% forecast last month and 4% in the closing months of Trump’s administration.

Washington Post: “The Fed also improved its estimates for economic growth. Fed officials expect GDP to grow by 7 percent this year, compared to 6.5 percent, when the last set of projections were released in March.”

Yahoo Finance: “The upward revision suggests that the Fed sees a faster-than-expected recovery. The economic projections raised expectations for real GDP growth in 2021 to 7.0%, a notch up from March projections for 6.5%.”

Jason Furman, Former CEA Chair: “Big picture the most important forecast revisions this year have been the expectations for stronger growth and lower unemployment.

See the history of the FOMC’s expectations for growth in 2021:

Sep 2020: 4.0%
Dec 2020: 4.2%
Mar 2021: 6.5%
Jun 2021: 7.0%”

The Fed continues to expect that we will achieve full employment this year at 4.5%, which is substantially down from 6.3% at the end of the Trump administration.

New York Times: “Federal Reserve officials left policy unchanged on Wednesday but moved up their expectations for when they would first raise interest rates from rock-bottom, a sign that a healing labor market and rising inflation were giving policymakers confidence that they would achieve their full employment and stable price goals in coming years.”

Yahoo Finance: “The Fed however, maintained its March expectation for the headline unemployment rate to end 2021 at 4.5%.”

Economic Policy Institute: “The official unemployment rate was 6.3% in January—matching the maximum unemployment rate of the early 2000s downturn—and the official number of unemployed workers was 10.1 million, according to the Bureau of Labor Statistics (BLS).”