New York Fed Raises Third-Quarter US Growth Forecast to 2.3%

The Federal Reserve Bank of New York raised its forecast for U.S. gross domestic product growth in the third quarter to 2.3% from 2.14%.

Walter Bloomberg reported on August 21 that the upward revision was driven by stronger-than-expected building permits and the Philadelphia Fed’s manufacturing index.

The New York Fed put the probability of third-quarter growth falling between 1.1% and 3.4% at 50%. It estimated the 80% probability range at 0.0% to 4.5%.

The higher forecast is also drawing attention to how the U.S. economy’s growth trajectory could influence monetary policy in the coming months.

Source: Bloomingbit