Economy 16 minutes ago (Jun 15, 2022 19:46)
Here are key takeaways from the Federal Reserve’s interest-rate decision and forecasts on Wednesday:
The Fed raised its benchmark rate by 75 basis points — the biggest increase since 1994 — to a range of 1.5%-1.75%, in line with investors’ and economists’ expectations that shifted on Monday following media reports that the central bank would likely consider such a move in wake of pickup in inflation data; Kansas City Fed President Esther George dissented in favor of a 50 basis-point hike
New dot-plot projections showed sharp increase from March, with federal funds target rising to 3.4% by year-end — implying another 175 basis points of tightening this year — and 3.8% in 2023, before falling to 3.4% in 2024; prior forecasts in March were for a 1.9% rate this year and 2.8% in 2023 and 2024
A couple of major changes to the statement: FOMC adds a line saying it’s “strongly committed to returning inflation to its 2% objective” and removes prior language that said the FOMC “expects inflation to return to its 2% objective and the labor market to remain strong”
Economic projections showed a much bumpier soft landing expected, with the unemployment rate rising from 3.7% at end-2022 to 4.1% in 2024; growth forecasts were cut to 1.7% in 2022 and 2023, from 2.8% and 2.2% in March; Fed officials still expect inflation to come down significantly in 2023
Reiterates path on balance-sheet reduction that took effect June 1, shrinking bond portfolio by $47.5 billion a month and stepping up to $95 billion in September
(Bloomberg) — Read More: Bloomberg’s TOPLive blog on the FOMC decision and press conference
©2022 Bloomberg L.P.
Key Takeaways From the Fed’s Rate-Hike Decision and Forecasts
By Yasin Ebrahim
Investing.com — The Federal Reserve surprised markets on Wednesday with a larger than expected 0.75% rate increase as persistently high inflation compelled the…
By Yoruk Bahceli and Dhara Ranasinghe LONDON (Reuters) – Rather than invent a radical new instrument to ease bond market strains across the euro bloc, investors reckon the…
By Balazs Koranyi and Francesco Canepa FRANKFURT/MILAN (Reuters) – The European Central Bank promised fresh support for the bloc’s indebted southern rim on Wednesday, tempering a…
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.