The Fed lowered its US economic growth forecast in the face of war and inflation

High prices and economic disruptions from the war in Ukraine are dimming the US Federal Reserve’s outlook on the recovery.

On March 16, the Fed raised interest rates by a quarter-percentage point and cut its GDP estimate for 2022. It now sees the economy expanding by 2.8% this year, down from the 4% it had predicted in December, when wages were still rising rapidly and omicron hadn’t peaked yet.  The new forecast is part of the central bank’s Summary of Economic Projections, which collects forecasts for the US economy from each member of the Board of Governors and each Federal Reserve Bank president four times a year.

https://datawrapper.dwcdn.net/smnIX/2/

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