US Fed slashes inflation forecast for 2015; sees stronger growth this year
{{#rendered}} {{/rendered}}The Federal Reserve has sharply cut its forecast for inflation next year, saying it will remain far below its 2 percent target through 2015.
The Fed now expects inflation to fall to between 1 percent and 1.6 percent in 2015, down from a previous forecast in September of 1.6 percent to 1.9 percent. The downgrade reflects plummeting oil and gas prices. The Fed kept its 2016 inflation forecast of 1.7 percent to 2 percent.
Policymakers have also boosted their forecasts for economic growth this year to as much as 2.4 percent, up from a previous estimate of 2 percent to 2.2 percent. That reflects strong growth of 4.3 percent from April through September, the healthiest pace in a decade.
{{#rendered}} {{/rendered}}The Fed updated its economic forecasts after a two-day policy meeting.