• Policymakers downgrade 2023 forecasts despite strong start
• Estimates imply a sharp slowdown through remainder of the year

Federal Reserve Chair Jerome Powell and his colleagues are expecting a sharp dropoff in economic activity through the rest of 2023 — at least, that’s the implication from new economic projections they published this week. 

The figures show policymakers now expect the US to eke out a 0.4% expansion this year, down from the 0.5% growth rate they penciled in at the last forecast round in December.