The Fed also said it will continue to increase its bond holdings, targeting Treasury purchases at $80 billion a month and mortgage-backed securities at $40 billion.
The Federal Open Market Committee met this week as states begin to reopen and after unemployment saw its worst monthly drop in history followed by its biggest gain. In addition, the meeting comes the same week the National Bureau of Economic Research declared that a recession started in February, ending the longest expansion in U.S. history.
Fed officials skipped releasing their quarterly economic projections at March meetings as uncertainty permeated over how long the U.S. would remain in stay-at-home mode and how deep the damage would be. They did release their forecasts this week. Here are the key numbers for 2020, followed by the next two years and the long-run projection:GDP: -6.5% in 2020, 5%, 3.5%, 1.8%Core inflation: 1%, 1.5%, 1.7%.
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