US Economic Outlook: For 2018 and Beyond
GDP/Gross Domestic Product
The U.S. GDP growth is expected to rise to 3.1 percent in 2018, 2.5 percent in 2019, and 2.0 percent in 2020. That's according to the most recent forecast released at the Federal Open Market Committee meeting on September 26, 2018. This estimate takes into account Trump's economic policies.
The unemployment rate will drop to 3.7 percent in 2018, and 3.5 percent in 2019 and 2020. That's lower than the Fed's 6.7 percent target.
Inflation will be 2.1 percent in 2018, 2.0 percent in 2019, and 2.1 percent in 2020. The core inflation rate strips out those volatile gas and food prices. The Fed prefers to use that rate when setting monetary policy. The core inflation rate will be 2.0 percent in 2018, and 2.1 percent in 2019 and 2020. It's unusual that the core rate is that similar to the regular inflation rate. Fortunately, the core rate is close to the Fed's 2 percent target inflation rate. That gives the Fed room to raise rates to a more normal level. The U.S. inflation rate history and forecast provides a good basis for predicting the coming years’ inflation levels.
U.S. manufacturing is forecast to increase faster than the general economy. Production will grow 2.8 percent in 2018. Growth will slow to 2.6 percent in 2019 and 2 percent in 2020.
Source: US Economic Outlook: For 2018 and Beyond
Credits: Kimberly Amadeo