US Federal Reserve Raises Interest Rates by 75 Basis Points

Washington, September 21 (QNA) - The US Federal Reserve raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023, stepping up their fight to curb inflation thats persisted near the highest levels since the 1980s.
In a statement Wednesday following a two-day meeting in Washington, the Federal Open Market Committee repeated that it "is highly attentive to inflation risks." The central bank also reiterated it "anticipates that ongoing increases in the target range will be appropriate," and "is strongly committed to returning inflation to its 2% objective." The decision, which was unanimous, takes the target range for the benchmark federal funds rate to 3% to 3.25% - the highest level since before the 2008 financial crisis, and up from near zero at the start of this year.
Officials expect the benchmark rate to rise to 4.4% by year end and 4.6% during 2023, according to the median estimate in updated quarterly projections published alongside the statement. That indicates a fourth-straight 75 basis-point hike could be on the table for the next gathering in November, about a week before the midterm elections.
Inflation peaked at 9.1% in June, as measured by the 12-month change in the US consumer price index. But its failed to come down as quickly in recent months as Fed officials had hoped: In August, it was still 8.3%. (QNA)