FOMC Brings Back the Projections; Economy’s Long Trek Back Boosts Treasuries

PGIM Fixed Income

June 2020

Ellen Gaske, PhD, CFA, Lead Economist G10 Economies, Global Macroeconomic Research Team, Katharine Neiss, PhD, Chief European Economist, Global Macroeconomic Research Team, and Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds

The Fed's latest projections show the economy remaining below full employment and shy of the inflation target even at the end of their forecast horizon of December 2022 and correspondingly, requiring no interest rate hikes presumably not only over that interval, but beyond.