The Federal Reserve today signaled that it anticipates accelerating the economic recovery in the United States from the coronavirus, with unemployment falling more than the central bank expected in June.
In new economic projections released with the monetary policy statement, Fed officials see the economic contraction 3.7% this year, by the median of estimates, against a 6.5% drop projected in June.
The Fed also expects the unemployment rate, which improved faster than the authorities predicted in June, will continue to fall, with officials projecting an unemployment rate of 7.6% at the end of this year and falling to 4% in 2023.
Inflation is expected to remain below 2% until 2023. Last month, the Fed presented a new strategy that promises to raise inflation above 2% to make up for years below the target.