Raises range by 0.25%
- 4 rate hikes in 2018. Projection is for 2.4% from 2.1% last
- Sees 3 hikes es in 2019 to 3.1% from 2.9% last
- Raised GDP to 2.8% from 2.7% last
- Lowered Unemployment to 3.6% from 3.8% last
- Sees core PCE at end of 2018 at 2.0% from 1.9%. PCE inflation at 2.1% from 1.9%
The Fed said:
- stance of monetary policy remains accommodative
- risks to economic outlook appear roughly balanced
- vote was unanimous
- medium longer run economic, rate estimates unchanged versus March
- further gradual hikes consistent with 2% inflation, growth
- median estimate rise to 4 total 2018 rate hikes
- labor market continue to strengthen, Job gains strong
- raises IOER rate by 20 basis points to 1.95% effective June 14
- longer term inflation gauges little changed
- spending picked up, investment continue to grow strongly
- Cap on treasuries rolloff to rise to $24 billion and $16 billion for MBS. Cap is as planned
- raises discount rate by 25 basis points to 2.5% effective June 14
