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TRACKING THE GOVERNMENT’S ROLE IN THE FINANCIAL SERVICES INDUSTRY
U.S. headwinds have turned into tailwinds
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After easing substantially during 2017, nancial conditions in the United States have reversed some of that easing. At this point, we do not see these developments as weighing heavily
on the outlook for economic activity, the labor market, and in ation. Indeed, the economic outlook remains strong. The robust job market should continue to support growth in household incomes and consumer spending, solid economic growth among our trading partners should lead to further gains in U.S. exports, and upbeat business sentiment and strong sales growth will likely continue to boost business investment. Moreover, scal policy is becoming more stimulative. In this environment, we anticipate that in ation on a 12-month basis will move up this year and stabilize around the FOMC’s 2 percent objective over the medium term. Wages should increase at a faster pace as well. The Committee views the near-term risks to the economic outlook as roughly balanced but will continue to monitor in ation developments closely.
FEDERAL RESERVE INFLATION PROJECTIONS
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Source: Federal Reserve Monetary Policy Report, February 2018
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