*** The Federal Reserve Bank of New York........>

FED: *** The Federal Reserve Bank of New York released their dynamic stochastic

general equilibrium (DSGE) model forecast. "The current Q4/Q4 GDP growth and

inflation forecasts for 2018 (2.3 percent and 1.9 percent, respectively) are

slightly higher than in March (2.1 percent and 1.8 percent, respectively)."

FRBNY notes "forecast revisions are largely due to the fact that the nowcasts

for both output growth and inflation in Q2 are higher than what the model

predicted in March"...while the "model attributes the stronger growth in 2018 to

a more buoyant environment for investment. The higher inflation is by and large

attributed to price markup shocks." FRBNY goes on to note "growth and inflation

projections for the remainder of the forecast horizon are essentially unchanged.

The model still expects core PCE inflation to be below the Federal Open Market

Committee's long-run goal of 2 percent in the medium run."