Since the January FOMC meeting, the dollar depreciated, on net, against most foreign currencies.
Beyond the near term, real GDP was expected to increase slightly faster than in the previous forecast, largely reflecting a somewhat
higher projected path for equity prices and a lower assumed trajectory for the foreign exchange value of the dollar.
Many participants, however, anticipated that relative strength in household spending would be partially offset by weakness in net
exports associated with lackluster foreign growth and the appreciation of the dollar since mid-2014.
With regard to the external sector, a number of participants said that they expected declines in net exports to continue to subtract
from real GDP growth, reflecting weak foreign activity as well as the earlier appreciation of the dollar. The outlook for growth
abroad had dimmed in recent months, suggesting a more persistent drag on growth of U.S. exports. A couple of participants commented
that emerging market economies faced an extended period of less rapid export growth, reflecting slower economic growth in many
advanced foreign economies and in China. It also was noted that weak growth abroad could lead to further appreciation of the dollar.