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The Federal Reserve significantly lowered its economic growth forecast for 2025 and raised its inflation rate estimate.
[The Federal Reserve significantly lowers the economic growth forecast for 2025 and raises the inflation rate estimate] The Federal Reserve significantly lowers the economic growth forecast for 2025 and raises the inflation rate estimate, increasing uncertainty around the economic outlook. Federal Reserve policymakers expect the GDP growth rate for 2025 to be 1.7%, down from the estimate of 2.1% in December; the long-term growth rate is expected to be 1.8%, unchanged from the December estimate. Federal Reserve policymakers expect the PCE price index to rise 2.7% by the end of 2025, up from the estimate of a 2.5% rise in December; the core PCE price index is expected to rise 2.8%, up from the estimate of a 2.5% rise in December.