The Fed thinks prices will keep rising and business will slow down for the rest of the year
The central bank publishedon Wednesday, offering its latest assessment of how policymakers see the recovery proceeding in the coming years. The previous projections came in December, before inflation ripped to its current highs and the Russian invasion of Ukraine brought new downside risks to the global economy. While the central bank sees the economic recovery still pushing forward through 2022, the rebound will be slower and bumpier than previously expected.
Officials' outlooks for the pace of the recovery also worsened. Economic growth as measured by gross domestic product is now expected to average 2.8% this year. That's down from the previous estimate of a 4% gain. The following two years are expected to show GDP growth of 2.2% and 2%, respectively, both unchanged from the December estimates.
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