KONTAN.CO.ID - WASHINGTON. The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and laid out an aggressive plan to push borrowing costs to restrictive levels by next year as concerns about high inflation and the war in Ukraine overtook the risks of the coronavirus pandemic. The U.S. central bank, in a surprise move, projected the equivalent of quarter-percentage-point rate increases at each of its six remaining policy meetings this year, which would push the target federal funds rate to a range between 1.75% to 2.00% by the end of 2022. By the end of next year the policy rate is projected to be 2.80%, above the 2.40% level officials now feel would slow the economy. A slowdown, however, may already be underway. Fed policymakers marked down their economic growth estimate for 2022 to 2.8%, from the 4% projected in December, as they began to discount the new risks facing the global economy.
Fed Hikes Interest Rates, Signals Aggressive Fight Against Inflation
KONTAN.CO.ID - WASHINGTON. The Federal Reserve on Wednesday raised interest rates by a quarter of a percentage point and laid out an aggressive plan to push borrowing costs to restrictive levels by next year as concerns about high inflation and the war in Ukraine overtook the risks of the coronavirus pandemic. The U.S. central bank, in a surprise move, projected the equivalent of quarter-percentage-point rate increases at each of its six remaining policy meetings this year, which would push the target federal funds rate to a range between 1.75% to 2.00% by the end of 2022. By the end of next year the policy rate is projected to be 2.80%, above the 2.40% level officials now feel would slow the economy. A slowdown, however, may already be underway. Fed policymakers marked down their economic growth estimate for 2022 to 2.8%, from the 4% projected in December, as they began to discount the new risks facing the global economy.