Fed Projects US Growth Rate of -2.4% This Year and 4.2% Next Year

The Unemployment Rate in 2020 Was 6.7%... Forecasted to Be 5.0% Next Year

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. central bank, the Federal Reserve (Fed), has revised upward the U.S. economic growth rate for this year to -2.4%. The economic outlook for the U.S. next year was also slightly raised to 4.2%.

On the 16th (local time), the Fed announced a revised economic forecast, projecting this year's U.S. GDP growth rate at -2.4%. This is an improvement from the forecast of -3.7% announced last September.

The Fed raised the U.S. economic growth rate for next year to 4.2%, up slightly from the previous forecast of 4.0%.

The unemployment rate forecast for this year was projected at 6.7%, indicating an improvement in employment compared to the previous forecast of 7.6%. The unemployment rate for next year was also revised downward to 5.0% from the previous forecast of 5.5%.

The Fed maintained this year's inflation rate forecast at 1.2%, but expects next year's inflation rate to rise slightly to 1.8%, up from the previous forecast of 1.7%.

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