Federal Open Market Committee
Advance release of table 1 of the Summary of Economic Projections to be released with the FOMC minutes
|2014||2015||2016||2017||Longer run||2014||2015||2016||2017||Longer run|
|Change in real GDP||2.3 to 2.4||2.6 to 3.0||2.5 to 3.0||2.3 to 2.5||2.0 to 2.3||2.3 to 2.5||2.1 to 3.2||2.1 to 3.0||2.0 to 2.7||1.8 to 2.7|
|September projection||2.0 to 2.2||2.6 to 3.0||2.6 to 2.9||2.3 to 2.5||2.0 to 2.3||1.8 to 2.3||2.1 to 3.2||2.1 to 3.0||2.0 to 2.6||1.8 to 2.6|
|Unemployment rate||5.8||5.2 to 5.3||5.0 to 5.2||4.9 to 5.3||5.2 to 5.5||5.7 to 5.8||5.0 to 5.5||4.9 to 5.4||4.7 to 5.7||5.0 to 5.8|
|September projection||5.9 to 6.0||5.4 to 5.6||5.1 to 5.4||4.9 to 5.3||5.2 to 5.5||5.7 to 6.1||5.2 to 5.7||4.9 to 5.6||4.7 to 5.8||5.0 to 6.0|
|PCE inflation||1.2 to 1.3||1.0 to 1.6||1.7 to 2.0||1.8 to 2.0||2.0||1.2 to 1.6||1.0 to 2.2||1.6 to 2.1||1.8 to 2.2||2.0|
|September projection||1.5 to 1.7||1.6 to 1.9||1.7 to 2.0||1.9 to 2.0||2.0||1.5 to 1.8||1.5 to 2.4||1.6 to 2.1||1.7 to 2.2||2.0|
|Core PCE inflation3||1.5 to 1.6||1.5 to 1.8||1.7 to 2.0||1.8 to 2.0||1.5 to 1.6||1.5 to 2.2||1.6 to 2.1||1.8 to 2.2|
|September projection||1.5 to 1.6||1.6 to 1.9||1.8 to 2.0||1.9 to 2.0||1.5 to 1.8||1.6 to 2.4||1.7 to 2.2||1.8 to 2.2|
Note: Projections of change in real gross domestic product (GDP) and projections for both measures of inflation are percent changes from the fourth quarter of the previous year to the fourth quarter of the year indicated. PCE inflation and core PCE inflation are the percentage rates of change in, respectively, the price index for personal consumption expenditures (PCE) and the price index for PCE excluding food and energy. Projections for the unemployment rate are for the average civilian unemployment rate in the fourth quarter of the year indicated. Each participant's projections are based on his or her assessment of appropriate monetary policy. Longer-run projections represent each participant's assessment of the rate to which each variable would be expected to converge under appropriate monetary policy and in the absence of further shocks to the economy. The September projections were made in conjunction with the meeting of the Federal Open Market Committee on September 16-17, 2014.
1. The central tendency excludes the three highest and three lowest projections for each variable in each year. Return to table
2. The range for a variable in a given year includes all participants' projections, from lowest to highest, for that variable in that year. Return to table
3. Longer-run projections for core PCE inflation are not collected. Return to table
Figure 1. Central tendencies and ranges of economic projections, 2014-17 and over the longer run
Central tendencies and ranges of economic projections for years 2014 through 2017 and over the longer run. Actual values for years 2009 through 2013.
Change in real GDP
|Upper End of Range||-||-||-||-||-||2.5||3.2||3.0||2.7||2.7|
|Upper End of Central Tendency||-||-||-||-||-||2.4||3.0||3.0||2.5||2.3|
|Lower End of Central Tendency||-||-||-||-||-||2.3||2.6||2.5||2.3||2.0|
|Lower End of Range||-||-||-||-||-||2.3||2.1||2.1||2.0||1.8|
|Upper End of Range||-||-||-||-||-||5.8||5.5||5.4||5.7||5.8|
|Upper End of Central Tendency||-||-||-||-||-||5.8||5.3||5.2||5.3||5.5|
|Lower End of Central Tendency||-||-||-||-||-||5.8||5.2||5.0||4.9||5.2|
|Lower End of Range||-||-||-||-||-||5.7||5.0||4.9||4.7||5.0|
|Upper End of Range||-||-||-||-||-||1.6||2.2||2.1||2.2||2.0|
|Upper End of Central Tendency||-||-||-||-||-||1.3||1.6||2.0||2.0||2.0|
|Lower End of Central Tendency||-||-||-||-||-||1.2||1.0||1.7||1.8||2.0|
|Lower End of Range||-||-||-||-||-||1.2||1.0||1.6||1.8||2.0|
Note: Definitions of variables are in the general note to the projections table. The data for the actual values of the variables are annual.
Figure 2. Overview of FOMC participants' assessments of appropriate monetary policy
Appropriate timing of policy firming
|Number of participants||15||2|
Note: In the upper panel, the height of each bar denotes the number of FOMC participants who judge that, under appropriate monetary policy, the first increase in the target range for the federal funds rate from its current range of 0 to 1/4 percent will occur in the specified calendar year. In September 2014, the numbers of FOMC participants who judged that the first increase in the target federal funds rate would occur in 2014, 2015, and 2016 were, respectively, 1, 14, and 2.
Appropriate pace of policy firming: Midpoint of target range or target level for the federal funds rate
Number of participants with projected midpoint of target range or target level
|Midpoint of target range
or target level (Percent)
Note: In the lower panel, each shaded circle indicates the value (rounded to the nearest 1/8 percentage point) of an individual participant's judgment of the midpoint of the appropriate target range for the federal funds rate or the appropriate target level for the federal funds rate at the end of the specified calendar year or over the longer run.