'We will stay the course until the job is done.' Fed Chair Jerome Powell speaks in a news conference after the central bank announced an interest rate hike of half a percentage point.
said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.
The new level marks the highest the fed funds rate has been since December 2007, just ahead of the global financial crisis and as the Fed was loosening policy aggressively to combat what would turn into the worst economic downturn since the Great Depression.Members penciled in increases for the funds rate until it hits a median level of 5.1% next year, equivalent to a target range of 5%-5.25.
However, there was a fairly wide dispersion in the outlook for future years, indicating that members are uncertain about what is ahead for an economy dealing withThe newest dot plot featured multiple members seeing rates heading considerably higher than the median point for 2023 and 2024. For 2023, seven of the 19 committee members – voters and nonvoters included – saw rates rising above 5.25%. Similarly, there were seven members who saw rates higher than the median 4.1% in 2024.
The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%, barely above what would be considered a recession. The GDP outlook for this year also was put at 0.5%. In the September projections, the committee expected 0.2% growth this year and 1.2% next.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
USD/CHF juggles below 0.9300 as investors await Federal Reserve/Swiss National Bank policyUSD/CHF is displaying back-and-forth moves in a narrow range below the critical resistance of 0.9300 in the early European session. The Swiss Franc ma
Consulte Mais informação »
EUR/USD floats above 1.0600 ahead of Federal Reserve monetary policy meetingEUR/USD portrays the typical pre-Fed consolidation as it makes rounds to 1.0630-20 ahead of the key Federal Open Market Committee (FOMC) monetary poli
Consulte Mais informação »
Federal Reserve to announce last rate hike of the year, other central banks to join inRate cuts generally act like steroids for stocks and other investments, but the Fed has been insisting it plans to hold rates at a high level to ensure the battle against inflation is won.
Consulte Mais informação »
Interest rates are going up, again, as Federal Reserve tries to tame inflation.The Federal Reserve is meeting this week and is expected to continue raising interest rates in an effort to fight stubborn inflation.
Consulte Mais informação »
Gold Price Forecast: XAU/USD edges lower ahead of Federal Reserve, holds above $1,800Gold price edges lower on Wednesday and extends the previous day's late pullback from the $1,824-$1,825 area, or its highest level since late June. Th
Consulte Mais informação »
Federal Reserve set to extend inflation fight with 7th rate hike of 2022After four straight three-quarter-point interest rate hikes, the Federal Reserve is set to announce a smaller half-point increase in its key rate.
Consulte Mais informação »