Fed's New Projections: A Report Card for Trump's Economy

Unpredictable Year Ahead: Federal Reserve Releases Economic ProjectionsThe Federal Reserve is set to unveil new economic projections this Wednesday, marking the end of a tumultuous year. Despite hopes for a return to normal after inflation, prices continued to rise due to factors like tariffs and labor shortages. The central bank appeared largely inactive, grappling with uncertainty.These quarterly projections, scheduled for 2 PM Eastern Standard Time, will shape expectations for Powells successor and serve as a report card for Trumps first year back in office. Key issues like inflation and affordability remain unresolved, with Trumps approval ratings on the economy declining and food prices rising. High housing prices and mortgage rates also pose challenges to homeownership.While some of the worst-case scenarios from earlier in the year didnt materialize, the US unemployment rate remained low, and economic growth prospects improved. Although overall inflation exceeds the Feds target, there are reasons to believe it may ease next year. The updated projections will reveal how Fed policymakers are navigating these developments and deciding on the benchmark interest rate, their primary tool for influencing inflation.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.