Fed lifts 2027 year-end rate view to 4.1%, slightly raises GDP outlook

The Federal Reserve raised the median projection for the federal funds rate at the end of 2027 to 4.1% in its September Federal Open Market Committee economic projections, up from 3.6% in the June forecast. The median GDP growth outlook was set at 2.3% for 2026, 2.4% for 2027 and 2.2% for 2028, each slightly higher than the previous projections of 2.2%, 2.3% and 2.2%, respectively. The median forecast for core personal consumption expenditures inflation was 3.4% for 2026 and 2.5% for 2027.