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Macro Flash: Reading through the FOMC June 2021 economic projections

The FOMC Meeting convened on June 15-16 surprised the markets with ramped-up expectations for future interest rate hikes expressed by some of the participants to the Meeting. But the accompanying documents released after the meeting include other interesting insights, which help further assess the outlook for monetary policy going forward.

The economic projections made by the participants to the latest FOMC meeting that was held on June 15-16 gives some interesting insights about the outlook for monetary policy in the upcoming quarters. The change of expectations about the timeline for future interest rate hikes was the most salient feature of the meeting that made it to the news headlines. But it is worth digging a bit deeper and reading through the documents accompanying the Meeting. Indeed, these documents contain useful insights about how the FOMC participants view the outlook for the US economy, and what would subsequently be the reaction function of the Monetary institution.


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