US Federal Reserve
The US Federal Reserve raised, today, March 16, interest rates for the first time since 2018, as inflation accelerates to the highest level in 40 years.
After a two-day meeting, the Fed raised rates by 25 basis points (bps) to range between 0.25% and 0.50%.
The US central bank forecast six more hikes this year. The Fed now expects its benchmark rate to rise to 1.9% by year-end and 2.8% by the end of 2023.
The rate hike was approved by the majority of the policymaking Federal Open Market Committee with only one dissent, St. Louis Fed President James Bullard, who wanted a 50-bps increase.
The US central bank also expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.
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