20 March | Dollar

Fed expects US GDP growth to slow and inflation to accelerate

Fed expects US GDP growth to slow and inflation to accelerate

The Federal Reserve (Fed) expects the US economic growth to reach 1.7% in 2025, down from the December’s estimate of 2.1%. The Fed also raised its core inflation forecast up to 2.8% from 2.5%. The changes indicate growing concern regarding the US stagflation, CNBC says. 

The Federal Open Market Committee’s (FOMC) statement highlights the rising uncertainty around the economic outlook. Donald Trump’s aggressive tariff policies on key US trading partners may result in more expensive goods and services, as well as a reduction in consumer spendings. 

The Fed chairman Jerome Powell thinks the current price growth may be partly due to the imposition of import duties. Besides, he expects a delay in progress in reaching the Fed’s inflation target this year. 

The US central bank still projects two rate cuts in 2025, despite the raised inflation outlook. The regulator officials think the benchmark fed funds rate will reach 3.9% by the end of this year.

Period: 17.07.2025 Expectation: 26000 pips
Institutional investor demand could push ETHUSD to 3,000
Yesterday at 10:38 AM 33
Period: 16.07.2025 Expectation: 2000 pips
USDJPY prepares to retest 148 Level
Yesterday at 08:19 AM 36
Period: 16.07.2025 Expectation: 900 pips
NVIDIA shares rise amid global AI infrastructure investments
09 July 2025 63
Period: 15.07.2025 Expectation: 800 pips
Breaking downtrend could push USDCAD to 1.375
09 July 2025 40
Period: 14.07.2025 Expectation: 1600 pips
Upcoming “Crypto Week” to boost bitcoin prices
08 July 2025 107
Period: 15.07.2025 Expectation: 400 pips
Selling AUDUSD targeting 0.65000 amid limited growth and technical weakness
08 July 2025 52
Go to forecasts