Economic Forecast: July 2020

19.1 19.2 19.3 19.4 20.1 20.2 20.3 20.4 21.1 21.2 21.3 21.4 2019 2020 2021

Percent Change: Quarterly SAAR, Annual Q4/Q4

 Gross Domestic Product 3.1 2.0 2.1 2.1 -5.0 -34.8 27.4 6.6 4.8 3.0 3.7 4.6 2.3 -4.2 4.0

 Personal Consumption Expenditures (PCE) 1.1 4.6 3.2 1.8 -6.8 -32.3 37.8 3.9 2.6 2.9 3.4 4.0 2.7 -2.5 3.2

 Residential Fixed Investment -1.0 -3.0 4.6 6.5 18.2 -42.6 20.2 -11.0 4.7 4.4 4.9 7.3 1.7 -7.7 5.3

 Business Fixed Investment 4.4 -1.0 -2.3 -2.4 -6.4 -32.6 -2.3 15.3 5.2 2.2 4.7 7.0 -0.4 -8.2 4.7

 Government Consumption & Investment 2.9 4.8 1.7 2.5 1.1 -6.1 2.0 1.6 -0.8 0.1 0.2 0.2 3.0 -0.4 -0.1

Billions of Chained 2012$

 Net Exports -944 -981 -990 -901 -817 -892 -880 -957 -975 -978 -986 -1010 -954 -886 -987

 Change in Business Inventories 116 69 69 13 -75 -351 -286 -116 3 27 61 114 67 -207 51

Percent Change: Quarterly YoY, Annual Q4/Q4

 Consumer Price Index 1.6 1.8 1.8 2.0 2.1 0.4 0.6 0.4 0.7 2.3 2.4 2.7 2.0 0.4 2.7

 Core Consumer Price Index (ex. Food & Energy) 2.1 2.1 2.3 2.3 2.2 1.3 0.9 0.8 0.6 1.6 1.6 1.8 2.3 0.8 1.8

 PCE Chain Price Index 1.4 1.4 1.4 1.4 1.6 0.5 0.5 0.5 0.6 1.6 1.7 2.0 1.4 0.5 2.0

 Core PCE Chain Price Index (ex. Food & Energy) 1.6 1.6 1.7 1.6 1.7 0.9 0.7 0.6 0.5 1.2 1.4 1.6 1.6 0.6 1.6

Change: Quarterly Mo. Avg., Thous., Annual Mil.

 Employment, Total Nonfarm 162 142 184 209 44 -6073 2339 993 800 600 500 450 2.1 -8.1 7.1

 Percent Change: Q4/Q4 1.4 -5.3 4.9

Percent

 Unemployment Rate 3.9 3.6 3.6 3.5 3.8 13.0 9.3 8.4 7.7 7.1 6.6 6.1 3.7 8.6 6.9

 Federal Funds Rate 2.4 2.4 2.2 1.6 1.3 0.1 0.1 0.1 0.1 0.1 0.1 0.1 2.2 0.4 0.1

1-Year Treasury Note Yield 2.5 2.3 1.8 1.6 1.1 0.2 0.2 0.1 0.1 0.2 0.2 0.2 2.1 0.4 0.2

10-Year Treasury Note Yield 2.7 2.3 1.8 1.8 1.4 0.7 0.7 0.7 0.7 0.8 0.8 0.8 2.1 0.9 0.8

 --------------- 2019 --------------- --------------- 2020 --------------- --------------- 2021 ---------------

July 10, 2020

Note: Interest rate forecasts are based on rates from June 30, 2020.

Note: Unshaded areas denote actuals. Shaded areas denote forecasts.

Note: Nonfarm employment numbers include temporary hiring for the 2020 decennial Census.

Sources: Actuals: Bureau of Economic Analysis, Bureau of Labor Statistics, Federal Reserve Board. Forecasts: Fannie Mae Economic and Strategic Research

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) group included in these materials should not be construed as indicating Fannie Mae's business prospects or 

expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR group bases its opinions, 

analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current or suitable for any particular purpose. 

Changes in the assumptions or the information underlying these views, including assumptions about the duration and magnitude of shutdowns and social distancing, could produce materially different results. The 

analyses, opinions, estimates, forecasts, and other views published by the ESR group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its 

management.