In addition, the committee raised its outlook for economic growth and inflation ahead. The median outlook for GDP tin 2021 went to 6.5%, a big upgrade from the 4.2% expectation in the December projections. Officials also indicated that the unemployment rate could fall to 4.5% by the end of the year and inflation could run to 2.2%, slightly above the Fed’s traditional 2% target.
Investors were looking to the minutes for clues about what it would take to raise rates in the future and how members felt about possibly reducing the rate of asset purchases. Fed officials have said that even with the expected rise in inflation, they are unlikely to tighten policy until they see “substantial further progress” on their economic goals.