The U.S. central bank now sees the economy growing 6.5% this year—predicting the largest annual output growth since 1984—and the unemployment rate falling to 4.5% by year’s end, compared to growth of 4.2% and unemployment of 5% projected at its December policy meeting. The pace of price increases is now expected to exceed the Fed’s 2% target for the year, hitting 2.4% by year’s end before falling back in 2022.”
