From WSJ: In every year of the economic recovery the Federal Reserve has overestimated how fast the economy would grow. Many economists believe it is doing so again. The Wall Street Journal’s monthly survey of private-sector economists shows that forecasters on average expect the economy to grow 2.3% this year and 2.8% next year.
The Fed is more optimistic. Its latest growth projections, made in March, average closer to 2.6% for 2013 and closer to 3.2% for 2014. At the conclusion of its two-day policy meeting on Wednesday, the Fed will release its updated projections of growth, inflation and unemployment. The evolution of these forecasts is a critical issue. Fed officials are unlikely at this meeting to change their $85-billion-per-month bond-buying program—launched to boost growth by pushing down long-term interest rates and pushing up asset prices, and spurring spending, hiring and investment….