Here are key takeaways from the Federal Reserve’s interest-rate decision and economic forecasts on Wednesday:
(Bloomberg) — Here are key takeaways from the Federal Reserve’s interest-rate decision and economic forecasts on Wednesday:
- Federal Open Market Committee votes unanimously to leave benchmark rate unchanged — as expected — in target range of 5.25%-5.5%, a 22-year high
- “Dot plot” of rate projections shows policymakers still foresee one more hike this year, but 2024 and 2025 rate projections each rose by a half-percentage point, a signal the Fed expects rates to stay higher for longer
- Twelve of 19 policymakers on the FOMC expect one more rate hike this year to be appropriate; the remaining seven favor holding rates steady
- Median projection for economic growth in 2023 jumps to 2.1% from 1% in June; officials significantly reduce unemployment forecasts and now expect jobless rate to peak at 4.1%, rather than 4.5%
- Statement repeats prior language saying officials are considering “the extent of additional policy firming that may be appropriate”; Fed acknowledges job gains have “slowed” but says they “remain strong”
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–With assistance from Craig Torres.
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