Fed Economic Projections: GDP to contract by 2.4% in 2020 vs. 3.7% in September's forecast

In its Summary of Projections, the US Federal Reserve noted that it expects the Gross Domestic Product (GDP) to contract by 2.4% (median) in 2020, compared to 3.7% reported in September's publication.

Furthermore, the Fed expects the economy to grow by 4.2% and 3.2% in 2021 and 2022, respectively. Both figures show a 0.2% upward revision from September's forecasts.

Additional takeaways as reported by Reuters

"Fed's median view of fed funds rate at end-2021 0.1% (prev 0.1%)."

"Fed's median view of fed funds rate at end-2022 0.1% (prev 0.1%)."

"Fed's median view of fed funds rate at end-2023 0.1% (prev 0.1%)."

"Fed's median view of fed funds rate in longer run 2.5% (prev 2.5%)."

"Median forecast of Fed policymakers is for rates to stay near zero through 2023."

"One policymaker sees lift-off in fed funds rate from zero in 2022, five see liftoff in 2023."

"Median Fed long-run forecasts - GDP growth 1.8% (prev 1.9%); jobless rate 4.1% (prev 4.1%); pce price index 2.0% (prev 2.0%)."