Federal Reserve — FOMC Statement (USA, 2026)

For release at 2:00 p.m., EDT, March 18, 2026 Summary of Economic Projections In conjunction with the Federal Open Market Committee (FOMC) meeting held on March 17 18, 2026, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and in ation for each year from 2026 to 2028 and over the longer run. Each participant s projections were based on information available at the time of the meeting, together with her or his assessment of appropriate monetary policy including a path for the federal funds rate and its longer-run value and assumptions about other factors likely to a ect economic outcomes. The longer-run projections represent each participant s assessment of the value to which each variable would be expected to converge, over time, under appropriate monetary policy and in the absence of further shocks to the economy.  Appropriate monetary policy  is de ned as the future path of policy that each participant deems most likely to foster outcomes for economic activity and in ation that best satisfy his or her individual interpretation of the statutory mandate to promote maximum employment and price stability. Page 1 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Table 1. Economic projections of Federal Reserve Board members and Federal Reserve Bank presidents, under their individual assumptions of projected appropriate monetary policy, March 2026 Percent Variable Median1 2026 2027 2028 Change in real GDP December projection Unemployment rate December projection PCE in ation December projection Core PCE in ation4 December projection Memo: Projected appropriate policy path Federal funds rate December projection 2.4 2.3 4.4 4.4 2.7 2.4 2.7 2.5 3.4 3.4 2.3 2.0 4.3 4.2 2.2 2.1 2.2 2.1 3.1 3.1 2.1 1.9 4.2 4.2 2.0 2.0 2.0 2.0 3.1 3.1 Longer run 2.0 1.8 4.2 4.2 2.0 2.0 Central Tendency2 2026 2027 2028 2.2 2.5 2.1 2.5 4.3 4.5 4.3 4.4 2.6 3.1 2.3 2.5 2.5 2.8 2.4 2.6 2.0 2.4 1.9 2.3 4.2 4.4 4.2 4.3 2.0 2.3 2.0 2.2 2.0 2.4 2.0 2.2 2.0 2.3 1.8 2.1 4.0 4.4 4.0 4.3 2.0 2.0 2.0 2.0 Longer run 1.8 2.0 1.8 2.0 4.0 4.3 4.0 4.3 2.0 2.0 Range3 2026 2027 2028 2.1 2.7 2.0 2.6 4.3 4.6 4.2 4.6 2.3 3.3 2.2 2.7 2.2 3.0 2.2 2.7 2.0 2.7 1.8 2.6 4.0 4.5 4.0 4.5 1.8 2.4 2.0 2.3 2.0 2.5 2.0 2.5 1.8 2.7 1.7 2.6 4.0 4.5 4.0 4.5 1.9 2.2 2.0 2.0 2.2 2.0 Longer run 1.7 2.5 1.7 2.5 3.8 4.5 3.8 4.5 2.0 2.0 3.1 3.0 3.1 3.6 2.9 3.6 2.9 3.6 2.9 3.6 2.9 3.6 2.8 3.6 2.9 3.5 2.8 3.5 2.6 3.6 2.1 3.9 2.4 3.9 2.4 3.9 2.6 3.9 2.6 3.9 2.6 3.9 2.6 3.9 Note: Projections of change in real gross domestic product (GDP) and projections for both measures of in ation are percent changes from the fourth quarter of the previous year to the fourth quarter of the year indicated. PCE in ation and core PCE in ation are the percentage rates of change in, respectively, the price index for personal consumption expenditures (PCE) and the price index for PCE excluding food and energy. Projections for the unemployment rate are for the average civilian unemployment rate in the fourth quarter of the year indicated. Each participant s projections are based on his or her assessment of appropriate monetary policy. Longer-run projections represent each participant s assessment of the rate to which each variable would be expected to converge under appropriate monetary policy and in the absence of further shocks to the economy. The projections for the federal funds rate are the value of the midpoint of the projected appropriate target range for the federal funds rate or the projected appropriate target level for the federal funds rate at the end of the speci ed calendar year or over the longer run. The December projections were made in conjunction with the meeting of the Federal Open Market Committee on December 9 10, 2025. 1. For each period, the median is the middle projection when the projections are arranged from lowest to highest. When the number of projections is even, the median is the average of the two middle projections. 2. The central tendency excludes the three highest and three lowest projections for each variable in each year. 3. The range for a variable in a given year includes all participants  projections, from lowest to highest, for that variable in that year. 4. Longer-run projections for core PCE in ation are not collected. Page 2 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 1. Medians, central tendencies, and ranges of economic projections, 2026 28 and over the longer run Note: De nitions of variables and other explanations are in the notes to table 1. The data for the actual values of the variables are annual. PercentChange in real GDPActual012345620212022202320242025202620272028Longer runMedian of projectionsCentral tendencyRange of projectionsPercentUnemployment rate123456720212022202320242025202620272028Longer runPercentPCE inflation123456720212022202320242025202620272028Longer runPercentCore PCE inflation123456720212022202320242025202620272028Longer runPage 3 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 2. FOMC participants  assessments of appropriate monetary policy: Midpoint of target range or target level for the federal funds rate Note: Each shaded circle indicates the value (rounded to the nearest 1/8 percentage point) of an individual participant s judgment of the midpoint of the appropriate target range for the federal funds rate or the appropriate target level for the federal funds rate at the end of the speci ed calendar year or over the longer run. Percent0.00.51.01.52.02.53.03.54.04.55.05.56.0202620272028Longer runPage 4 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 3.A. Distribution of participants  projections for the change in real GDP, 2026 28 and over the longer run Note: De nitions of variables and other explanations are in the notes to table 1. Number of Participants202624681012141618201.4 1.51.6 1.71.8 1.92.0 2.12.2 2.32.4 2.52.6 2.7Percent range March projectionsDecember projectionsNumber of Participants202724681012141618201.4 1.51.6 1.71.8 1.92.0 2.12.2 2.32.4 2.52.6 2.7Percent rangeNumber of Participants202824681012141618201.4 1.51.6 1.71.8 1.92.0 2.12.2 2.32.4 2.52.6 2.7Percent rangeNumber of ParticipantsLonger run24681012141618201.4 1.51.6 1.71.8 1.92.0 2.12.2 2.32.4 2.52.6 2.7Percent rangePage 5 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 3.B. Distribution of participants  projections for the unemployment rate, 2026 28 and over the longer run Note: De nitions of variables and other explanations are in the notes to table 1. Number of Participants202624681012141618203.6 3.73.8 3.94.0 4.14.2 4.34.4 4.54.6 4.7Percent range March projectionsDecember projectionsNumber of Participants202724681012141618203.6 3.73.8 3.94.0 4.14.2 4.34.4 4.54.6 4.7Percent rangeNumber of Participants202824681012141618203.6 3.73.8 3.94.0 4.14.2 4.34.4 4.54.6 4.7Percent rangeNumber of ParticipantsLonger run24681012141618203.6 3.73.8 3.94.0 4.14.2 4.34.4 4.54.6 4.7Percent rangePage 6 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 3.C. Distribution of participants  projections for PCE in ation, 2026 28 and over the longer run Note: De nitions of variables and other explanations are in the notes to table 1. Number of Participants202624681012141618201.5 1.61.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.03.1 3.23.3 3.4Percent range March projectionsDecember projectionsNumber of Participants202724681012141618201.5 1.61.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.03.1 3.23.3 3.4Percent rangeNumber of Participants202824681012141618201.5 1.61.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.03.1 3.23.3 3.4Percent rangeNumber of ParticipantsLonger run24681012141618201.5 1.61.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.03.1 3.23.3 3.4Percent rangePage 7 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 3.D. Distribution of participants  projections for core PCE in ation, 2026 28 Note: De nitions of variables and other explanations are in the notes to table 1. Number of Participants202624681012141618201.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.0Percent range March projectionsDecember projectionsNumber of Participants202724681012141618201.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.0Percent rangeNumber of Participants202824681012141618201.7 1.81.9 2.02.1 2.22.3 2.42.5 2.62.7 2.82.9 3.0Percent rangePage 8 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 3.E. Distribution of participants  judgments of the midpoint of the appropriate target range for the federal funds rate or the appropriate target level for the federal funds rate, 2026 28 and over the longer run Note: De nitions of variables and other explanations are in the notes to table 1. Number of Participants202624681012141618201.88 2.122.13 2.372.38 2.622.63 2.872.88 3.123.13 3.373.38 3.623.63 3.873.88 4.12Percent range March projectionsDecember projectionsNumber of Participants202724681012141618201.88 2.122.13 2.372.38 2.622.63 2.872.88 3.123.13 3.373.38 3.623.63 3.873.88 4.12Percent rangeNumber of Participants202824681012141618201.88 2.122.13 2.372.38 2.622.63 2.872.88 3.123.13 3.373.38 3.623.63 3.873.88 4.12Percent rangeNumber of ParticipantsLonger run24681012141618201.88 2.122.13 2.372.38 2.622.63 2.872.88 3.123.13 3.373.38 3.623.63 3.873.88 4.12Percent rangePage 9 of 17 For release at 2:00 p.m., EDT, March 18, 2026 Figure 4.A. Uncertainty and risks in projections of GDP growth Median projection and con dence interval based on historical forecast errors FOMC participants  assessments of uncertainty and risks around their economic projections Note: The blue and red lines in the top panel show actual values and median projected values, respectively, of the percent change in real gross domestic product (GDP) from the fourth quarter of the previous year to the fourth quarter of the year indicated.