While everyone is debating just what the Fed's new qualtiative guidance means, the Fed quietly lowered its GDP forecast for 2014-2016 modestly from its December forecast, even as it sees unemployment falling faster than before, and hitting 5.2%-5.6% by 2016.
[3]
And perhaps more important, the "dots" now indicate that the number of people who see policy firming in 2015 is 13, up 1 from 12 in December.
[4]
And the punchline: the median 2016 rate forecast has risen from 1.75% to 2.25% - half a percent higher despite what is effectively weaker overall economic projections.