Fed Sees Moderate Growth, Inflation to Normalize by 2028

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The Federal Reserve’s December meeting minutes highlight a steady but moderate U.S. economic growth, with the labor market slowing and wage increases staying in line with last year. Officials warned that a potential government shutdown could drag on near-term GDP. Looking ahead, the Fed expects growth to run slightly above potential after 2025, with inflation gradually returning to the 2% target by 2028, though risks and uncertainties remain elevated.