Going Steady

   The guardians of the nation's economy may have found a steady path for the next four years, with inflation at approximately the target rate of 2 percent, unemployment at less than 5 percent, even as overall economic growth fades a bit but nevertheless in the range of 2 percent yearly, according to a new projection by the Federal Reserve Board.
   Separately, the Fed said it would keep its target interest rate for its key federal funds lending program at its current range of 1 percent to 1.25 percent.
   Recent hurricanes are affecting economic activity, the Fed noted, but overall the nation will continue its path of moderate growth in employment and production.
   The Fed's projection is for Gross Domestic Product (GDP) will expand at 2.4 percent this year, and fade to 2.1 percent next year and slide a bit further to 1.8 percent in 2020.
   Unemployment, however, will remain below 5 percent, according to the Fed's projection, at 4.3 percent this year, then 4.1 percent the next two years and hold at 4.2 percent in the year 2020.
   Whether the projected growth rate will satisfy politicians, however, is another issue, but the Fed has routinely acted independently of political pressure.
   That could change, however, since the Fed's Board of Governors has several vacant seats, and the president could move to fill them with nominees who would push for a more rapid economic growth rate of 3 percent or even 4 percent.
   Historically, the Fed has resisted any trend to a fast growth rate because of the risk of a sudden fall.