The Federal Open Market Committee (FOMC) has released its updated median projections for the appropriate level of the federal funds rate at the end of each year and the longer run.
The median estimate for the end of 2026 is now 3.750%, within a range of 3.375% to 4.375%. This represents an increase from the previous projection of 3.375%.
For 2027, the committee's median projection stands at 3.625%, with a range of 2.875% to 4.375%. The prior estimate for this period was 3.125%.
Looking ahead to 2028, the median forecast is 3.375%, within a projected range of 2.875% to 3.875%. This is also higher than the previous estimate of 3.125%.
For the longer-run projection, the median level is now 3.0625%, with a range of 2.875% to 3.875%. The previous long-run estimate was 3.125%.
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