What are the FOMCs forecasts about the future? Go to the FOMC Calendar (see FOMC Documents link above) and download and read the Projection Materials PDF from the meeting on Sep 20-21, 2022. Use the Projection Materials to match the following questions to their correct answer: -

(1) From the Median section of Table 1, how much highest was the forecast of PCE inflation for 2022 in Sep 20-21 compared with the earlier forecast in June (see also Figure 3.C)?

(2) From the Median section of Table 1, what does the FOMC forecast will happen to real GDP growth and PCE inflation?

(3) From Figure 2, what are FOMC participants' assessments of "appropriate monetary policy" in the "Long Run"? -

(4) From Figure 4.A, what are the approximate lower and upper bounds of the 70% confidence interval for the forecast of real GDP growth (%) in 2025? -

(5) From Figure 4.C, what are the approximate lower and upper bounds of the 70% confidence interval for the forecast of PCE inflation (%) in 2025?

(6) From Figure 5, what are the approximate lower and upper bounds of the 70% confidence interval for the forecast of the federal funds rate (%) in 2025?

(A) About 4.1 and -0.5 percent.

(B) Real GDP growth is forecasted to increase by a factor of 5 and inflation to decline by more than half. GDP from 0.2 to 1.2 to 1.7; inflation from 5.4 to 2.8 to 2.3.

(C) About 0 to 5 3/4 percent.

(D) 3.0, 2.25, and 2.5 percent.

(E) 5.4 vs 5.2 percent or 0.2 percentage points.

(F) About 1 percent and 3 percent.