Fed sees interest rates staying near zero through 2022 with economy shrinking 6.5% in 2020.

  • 2021 is expected to show a 5% gain followed by 3.5% in 2022,.
  • The Fed said it will continue to increase its bond holdings, targeting Treasury purchases at $80 billion a month and mortgage-backed securities at $40 billion.
  • Fed funds rate: 0%-0.25% through 2022, with the long-run rate at 2.5%.
  • GDP: -6.5% in 2020, 5% in 2021, 3.5% in 2022.
  • Unemployment: 9.3% in 2020, 6.5% in 20202, 5.5% in 2022.
  • Headline inflation: 0.8% in 2020, 1.6% in 20202, 1.7% in 2022.
  • Core inflation: 1% in 2020, 1.5% in 20202, 1.7% in 2022.