Fed, opens to ‘tapering’. US GDP estimate + 5.9% in 2021

ROME, SEPTEMBER 22 – A slowdown in the speed of bond purchases could be guaranteed in the short term. This was stated by the Fed at the end of the two-day meeting, effectively opening to tapering. The bank expects the US economy to grow 5.9% this year, then slow to 3.8% in 2022 and 2.5% in 2023. In 2021, inflation is expected at 4.2% and then to 2.2% for next year and the next. The unemployment rate is estimated at 4.8% in 2021, before dropping to 3.8% in 2022 and 3.5% in 2023. Most FOMC members expect interest rates to rise in 2022. This is what emerges from the dot-plots, the tables attached to the final press release issued at the end of the two-day meeting. Six members expect a rate hike next year, while three estimate there will be two upside adjustments. (HANDLE).

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