Powell Says He Expects Economic Growth to Moderate in 2019

In 2018, the FOMC predicted strong economic growth, leading to a decrease in unemployment and a rise in inflation to 2%. The committee planned gradual interest rate increases. However, the economy performed better than expected, resulting in four rate hikes. For 2019, growth is expected to moderate, with projections showing a slight decrease in growth and inflation. The federal funds rate is anticipated to be in a range where opinions on policy stance may vary. The FOMC will continue to monitor economic indicators to ensure policy supports economic expansion with stable inflation.

What are the two important differences in the policy outlook between early 2018 and today?

What is the projected inflation rate in the median projection for 2019?