Fed Projects Gradual Decline in Unemployment Through 2027
FOMC forecasts show unemployment easing from 4.5% in 2025 to 4.3% by 2027, with GDP growth expected to reach 4.2% by end-2028.
Summary
The Federal Reserve's Federal Open Market Committee projects a median unemployment rate of 4.5% for 2025, declining to 4.4% in 2026 and 4.3% in 2027. The committee also forecasts median GDP growth of 4.2% by the end of 2028.
Terms & Concepts
- FOMC: The Federal Open Market Committee, responsible for setting U.S. monetary policy including interest rates and economic projections.
- Median GDP Growth Forecast: An economic projection that represents the middle value of all GDP growth estimates from policymakers, indicating the central tendency of expectations.