Federal Reserve (FED) hiked the Interest rate by 75BPS to tame the Inflation


Federal Reserve (Fed) has raised rates 75 Basis Points in an effort to tame the Inflation. Fed officials now predict the key rate will end 2022 at a range of 4.25% to 4.5%, a full percentage point above the 3.25% to 3.5% they projected in June, and close out next year at 4.5% to 4.75%, according to their median estimate. That suggests the central bank could approve another three-quarter point hike at its November meeting and then a half-point rate rise in December.

The central bank expects to cut the fed funds rate by about three-quarters of a point in 2024, presumably in response to a slowing economy or possibly a recession.