Business Insider: The Fed Just Stoked Fears of a Dreaded Economic Stagflation Scenario
Article by Jennifer Sor in Business Insider
The Fed's interest rate decision didn't turn any heads on Wall Street, but its economic projections hint at a dire economic scenario that investors have been stressing about in recent weeks.
At the conclusion of its policy meeting on Wednesday, the central bank held its benchmark rate steady at a range of 4.25% to 4.50%, in line with what markets expected. However, its latest economic projections were a bit more jarring.
The Fed is now eyeing lower economic growth and higher inflation for 2025, a revision that's kicked up fears of stagflation — a scenario that hasn't been seen in decades.
In its Summary of Economic Projections report, Fed officials put real GDP growth this year at 1.7%, down from .....