Fed Raises Rates and Removes Reference to 'Accommodative' Policy

The Federal Reserve is likely to implement another rate move in December, raising the Fed funds target range. The committee forecasts three rate moves in 2019 and one in 2020, with no changes in 2021. The terminal rate is expected to remain at 3.4%, while the long-run neutral rate is 3%. Economic growth is driving the rate move, with GDP forecasts for 2018 revised to 3.1%. Inflation is projected to end the year at 2.1% and unemployment to stay below 4% through 2021. The decision was unanimously approved by the committee, including the new vice chair.

What is the expected rate move by the Federal Reserve in December?

How many rate moves are forecasted for 2019 and 2020?

What is the terminal rate mentioned in the text?

What factors are driving the idea of another rate move this year?

What is the projected inflation rate at the end of the year?