The U.S. economy could grow more slowly in the first quarter than was expected last fall, but the unemployment rate may come down faster, according to a survey of forecasters released Friday by the Philadelphia Federal Reserve.
The forecasters now predict that the U.S. economy could grow by 1.8% in the first quarter of this year, down from the 3.9% growth expected last November. But growth for the year is only expected to be modestly lower, with forecasters projecting a 3.7% increase in real gross domestic product for 2022, down from the 3.9% projected in November.
Forecasters also expect inflation to stay steady over the longer term, estimating that the personal consumption expenditures price index will average 2.2% a year over the next decade.