The Federal Reserve has raised its year-end inflation forecast to 3.3%, reflecting a lack of progress in cooling price pressures. BofA analysts suggest core PCE is unlikely to fall below 3% by year-end, justifying a hawkish policy shift.
Key Takeaways
- 1.The Fed increased its year-end inflation forecast to 3.3% from 2.7%.
- 2.Core PCE inflation is unlikely to end the year below 3.0%.
Table of Contents
- Key takeaways
- Inflation is unlikely to end the year below 3%
- US GDP Tracking
- Today's economic calendar
- Important Disclosures
- Research Analysts
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Authors
Stephen JuneauAditya BhaveShruti Mishra
Themes
Inflation persistenceHawkish Fed policy
Regions
North AmericaUnited States