Federal Reserve staff's economic growth forecasts accelerated compared to October.

The Federal Reserve meeting minutes' staff economic outlook noted that, overall, real GDP growth is expected to accelerate slightly through 2028 compared to the projections prepared for the October meeting. This primarily reflects the anticipated greater support from financial market conditions and stronger expectations for potential output growth. After 2025, GDP growth is expected to remain above potential through 2028 as the negative impacts of high tariffs diminish and fiscal policy and financial market conditions continue to support spending. Consequently, the unemployment rate is expected to gradually decline after this year, reaching a level slightly below the staff's estimated natural rate of unemployment in 2027. Overall, staff's inflation projections for 2025 and 2026 are slightly lower than those presented at the October meeting, but their projections for 2027 and 2028 remain similar to previous projections.