FOMC Projections: U.S. Economic Outlook Through 2027

The Federal Reserve lowered interest rates at its December 2024 meeting to bolster employment and maintain price stability, reflecting its proactive stance on sustaining economic growth.

The FOMC also shared its long-term economic projections, providing insights into GDP growth, unemployment, and inflation trends through 2027. Looking ahead, the 2025 FOMC meeting schedule highlights critical dates for upcoming monetary policy decisions, with key sessions offering updates on economic projections. These developments shape the outlook for the U.S. economy and monetary policy in the years ahead.

Fed Lowers Interest Rates to Support Employment and Price Stability

At its December 2024 meeting, the Federal Open Market Committee (FOMC) announced a 25-basis-point reduction in interest rates, which brings the target range to 4.25%–4.5%. This decision underscores the Federal Reserve's dedication to its dual mandate: fostering maximum employment and maintaining price stability.

The rate drop reflects the Fed's assessment of current economic conditions and its proactive approach to maintaining economic growth while balancing inflationary pressures. As policymakers continue to monitor evolving data, this adjustment aims to support a stable and resilient economic environment heading into 2025.

Economic Outlook 2024–2027: Key Projections from the FOMC

During the Federal Open Market Committee (FOMC) meeting on December 17–18, 2024, policymakers shared their forecasts for the U.S. economy, outlining expectations for GDP growth, unemployment, and inflation through 2027 and beyond. These insights reflect their views on the likely economic trajectory under appropriate monetary policy conditions.

The projections include:

GDP Growth: Anticipated trends in economic expansion.
Unemployment Rate: Predictions on job market stability.
Inflation: Expectations for price levels and purchasing power.

Each forecast is shaped by the latest data and participants' assessments of the federal funds rate path. Longer-term projections indicate where key economic indicators are expected to stabilize, assuming no significant economic disruptions.

This comprehensive outlook aims to align monetary policy with the Federal Reserve’s dual mandate: promoting maximum employment and ensuring price stability. These projections serve as a guide for understanding future economic conditions and policy direction.

Explore these key insights to better prepare for the economic landscape ahead.

Federal Reserve 2025 Meeting Schedule: Key Dates for Monetary Policy Decisions

The Federal Open Market Committee (FOMC) has announced its tentative meeting schedule for 2025. The Committee intends to meet eight times during the year, with each meeting lasting two days. The scheduled dates are as follows:

January 28–29, 2025
March 18–19, 2025 (accompanied by a Summary of Economic Projections)
May 6–7, 2025
June 17–18, 2025 (accompanied by a Summary of Economic Projections)
July 29–30, 2025
September 16–17, 2025 (accompanied by a Summary of Economic Projections)
October 28–29, 2025
December 9–10, 2025 (accompanied by a Summary of Economic Projections)

These meetings are crucial for setting U.S. monetary policy, including decisions on interest rates and other economic measures. The sessions on the Federal Reserve website marked with an asterisk (*) will include the release of the Summary of Economic Projections, providing insights into the FOMC's economic outlook. For more details, you can refer to the official Federal Reserve Board's meeting calendar.

Source: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

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