Transcript for Fed raises short-term interest rates
Since September the US economy has continued to perform well roughly in line with our expectations. The economy has been adding jobs at a pace that will continue bringing the unemployment rate down over time. Wages have moved up for workers across a wide range of occupations. Are welcome development. Inflation has remained low and stable. And is ending the year a bit more subdued than most had expected. Although some American families and communities continue to struggle and some longer term economic problems remain. The strong economy is benefiting many Americans. Today we raised our target range for the short term interest rates. By another quarter percentage point. As I've mentioned most of my colleagues expect the economy to continue to perform well in the coming year. Many FOMC participants had expected that economic conditions would likely call for about three more rate increases in 2019. We have brought that down a bit and now think it is more likely that the economy will grow in a way that will call for to interest rate increases over the course of next year. In early 2018 we saw a rising trajectory for growth. Today instead we seek growth moderating ahead. The median of FOMC participants projections shows growth of 3% this year and 2.3 percent in 2019. With growth remaining next year above its longer run normal value the unemployment rate is projected to fall a bit further to 3.5 percent by the end 2019.
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