US Fed hikes interest by 50 bps, sees 5.1% rate in 2023

The Federal Reserve

The Federal Reserve lifted today, Dec. 14, interest rates by 50 basis points (bps) in line.  

The Fed raised target interest rate to a range of 4.25%-4.50%, from 4% and 3.75%. 
 

The Federal Open Market Committee (FOMC) anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.

The Committee's will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.

The US Central Bank's rate projection of 5.1% by the end of 2023 was up from its estimate of 4.6% in September.

The Federal Reserve raised interest forecasts to 4.1% in 2024 and 3.1% in 2025, compared to previous estimates of 3.9% and 2.9%, respectively.