We're Expecting Higher GDP Growth--and Higher Inflation Too
We've increased our U.S. GDP growth forecast.
We’re increasing our 2021 U.S. real GDP growth forecast to 6.2% from the 5.3% we expected in our last update in February. The main reason for the upward revision is a faster-than-expected U.S. consumer recovery. We now expect 7.5% real consumption growth in 2021 versus 6% previously.
We’re also increasing our 2021 inflation forecast, although we think the Federal Reserve will have little trouble keeping inflation under control.