NEW: Fed Projects Increased Economic Growth, Unemployment to Continue to Fall

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).”