New York Fed DSGE model lowers inflation forecast
Quarterly update on the dynamic stochastic general equilibrium (DSGE) model
The DSGE model isn't the New York Fed's official forecast but it's an input for policymakers. It's saying the same thing as markets -- inflation isn't coming.
The core PCE forecasts for 2017 and 2018 were both lowered to 1.3% from 1.5%. The 2019 forecast was lowered to 1.5% from 1.6%.
Growth was mixed with GDP bumped to 2.0% from 1.9% this year but lowered in the years ahead. More details here.
Separately, the NY Fed's Nowcast GDP tracking model forecast is due out later today.