--- title: FED Forecasts Better Economic Data description: Last week the FED, despite predicting an economic contraction for 2020, improved its forecasts for 2020. image: https://blog.anchoreafi.com/hubfs/Captura%20de%20pantalla%202020-09-23%20a%20las%2020.06.05.png --- ![](https://blog.anchoreafi.com/hubfs/Captura%20de%20pantalla%202020-09-23%20a%20las%2020.06.05.png) # FED Forecasts Better Economic Data Published by [ Josep Duran ](https://blog.anchoreafi.com/en/author/josep-duran) on Sep 23, 2020 8:19:36 PM Last week, the FED met to make a decision on interest rates. As expected, interest rates remained between 0% and 0.25%. The interesting thing about the meeting was not this decision, but the FED's speech and its economic forecasts. Despite showing concern about the Covid-19 crisis, its economic forecasts improved substantially compared to the last meeting in June. ![](https://blog.anchoreafi.com/hubfs/image-png-Sep-18-2020-10-42-38-98-AM.png) As we can see in the graph, the US economy will "only" fall by 3.7% in 2020. Compared with other economies, such as Spain, where the drop in GDP is expected to be close to 10%, we can say that this figure indicates a greater resilience of the North American economy compared to other developed economies. Similarly, the expected unemployment rate was also better than in June. ![](https://blog.anchoreafi.com/hubfs/image-png-Sep-18-2020-10-45-04-15-AM.png)   At the same time, inflation will also be higher than expected, thus indicating a reactivation of economic activity. ![](https://blog.anchoreafi.com/hubfs/image-png-Sep-18-2020-10-56-28-50-AM.png)   Although the macroeconomic data for the United States is not good, it is better than expected last quarter. It seems that, at least in the US, the recovery takes a more "V" shape than in other economies, in line with expectations priced in the financial markets. Tags: Economía, Estados Unidos [Back to Blog](https://blog.anchoreafi.com/en) - [Tweet](https://twitter.com/share) ## Related Articles ## [Bear Market or "Flash Crash"?](https://blog.anchoreafi.com/en/mercado-bajista-o-flash-crash?hsLang=en) We can look for many comparisons between the crisis of 2007 and the crisis of 2020. One of them,... [Read More ](https://blog.anchoreafi.com/en/mercado-bajista-o-flash-crash?hsLang=en) ## [Risks for 2021](https://blog.anchoreafi.com/en/riesgos-para-el-2021-borrador?hsLang=en) Although market consensus indicates that 2021 will be a positive year for equities, that does not... [Read More ](https://blog.anchoreafi.com/en/riesgos-para-el-2021-borrador?hsLang=en) ## [Two Different Causes for Two Different Crisis](https://blog.anchoreafi.com/en/two-different-causes-for-two-different-crisis?hsLang=en) Today, the stock market is discounting the so-called "V-shaped recovery": the economy undergoes a... [Read More ](https://blog.anchoreafi.com/en/two-different-causes-for-two-different-crisis?hsLang=en) **