Fannie Mae upwardly revised its GDP forecast for the
year from 6.8 percent to 7.0 percent in its May report on economic development.
The company’s economists say first quarter growth was stronger than expected
and the outlook for near-term consumer spending has improved. They have,
however, revised their 2022 growth forecast down 0.2 point to 2.8 percent.

They note that supply chain disruptions, labor scarcity, and inflationary
pressures are increasing risks to future growth. The inflation forecast was
revised upward, and they now expect the annual change will not fall below the
Federal Reserve’s long-run 2.0 percent target within the forecast time horizon.

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