The Federal Open Market Committee raised the federal funds rate target by another 75 basis points and released updated projections reflecting the impact of its campaign against inflation.
Fed raises rates as projections reflect impact
September 22, 2022 / By ICBA
The Federal Open Market Committee raised the federal funds rate target by another 75 basis points and released updated projections reflecting the impact of its campaign against inflation.
The Federal Open Market Committee raised the federal funds rate target by another 75 basis points and released updated projections reflecting the impact of its campaign against inflation.
Fed Actions: The FOMC’s 75-point rate hike was its third in as many meetings, bringing target interest rates to a range of 3% to 3.25%. The FOMC also said it will continue reducing its securities holdings, emphasizing its commitment to returning inflation to its 2% objective.
Projections: In updated economic projections, the Fed raised expected year-end interest rates to 4.4% from 3.4% in June, shrank its 2022 GDP growth outlook to 0.2% from 1.7%, and raised its projected 2023 unemployment rate to 4.4% from 3.9%.
Key Quote: "We have got to get inflation behind us,” Powell said in a press conference. “I wish there were a painless way to do that. There isn't.”
Next: The FOMC has two more meetings this year, scheduled for Nov. 2-3 and Dec. 14-15.
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