What are the FOMC's projections for interest rates in 2023?

The FOMC members now forecast that the US policy rate will be 0.6% at the end of 2023, an important upward change from 0.1% projected in March. In other words, the US central bankers believe that two interest rate hikes will be appropriate in 2023. It means that they started to think about tapering, which is fundamentally negative for gold prices.

What does the FOMC expect for economic growth in 2023?

As one can see, the FOMC expects that the GDP will soar 7% in 2021, compared to a 6.5% rise expected in March. They also assume that the pace of economic growth will be slightly higher in 2023. Meanwhile, the Fed officials believe now that the PCE inflation (core PCE) will jump to 3.4% (3%) this year, compared to 2.4% (2.2%) seen in March.

What is the goal of the FOMC?

The Federal Open Market Committee (FOMC) is the US Federal Reserve's primary monetary policymaking body. Their goal is to ensure economic price stability and maximum employment with moderate long-term interest rates. They achieve this by influencing the rate of interest in the economy through open market operations.