The Fed raised the rate to the maximum value since 2006 of 4.75-5%
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The US Federal Reserve System (FRS) raised its key rate by 25 basis points to 4.75-5%. The rate has reached its highest level since 2006. The average rate forecast for the end of 2023 is 5.1%.
“The committee aims to achieve maximum employment and inflation of 2% in the long term. In support of these goals, the committee decided to raise the target range for the federal funds rate to 4.75-5%, ”quoted on the Fed website. solution Open Market Committee (FOMC).
In the message of the regulator it is said that inflation in the US remains elevated and additional tightening of monetary policy may be appropriate. The Fed raised its inflation forecast for this year from 3.1% to 3.3%, while keeping the forecast for 2024 at 2.5%. GDP forecasts for the current year and 2024 have been worsened from 0.5% to 0.4% and from 1.6% to 1.2%. The forecast for the unemployment rate for 2023 was lowered from 4.6% to 4.5%, for 2024 it was kept at 4.6%.
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