The US Federal Reserve cuts its growth estimates for 2021

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The US central bank, which kept interest rates unchanged on Wednesday, expected higher-than-expected inflation this year, noting that the delta bulge was slowing down the economic recovery, and lowered its growth forecast for 2021.And the Federal Reserve indicated in a statement after its monetary committee meeting that it may be ready “soon” to reduce its aid to the economy.

Currently, inflation is expected to accelerate to 4.2 percent this year, compared to 3.4 percent estimated in June, before slowing to 2.2 percent in 2022 and remaining unchanged in 2023.In parallel, the Federal Reserve sharply lowered its estimate of US GDP growth for 2021 to 5.9 percent from 7 percent in June.

For the year ahead, it raised its estimate for US growth to 3.8 percent.

In terms of employment, the unemployment rate is currently estimated at 4.8 percent for the year 2021. But it is supposed to decrease to 3.8 percent next year and return to the pre-pandemic level the following year.





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