US Fed Decision To Raise Rates By 75 bps Was On Expected Lines | ET Now | Latest News
15While the US Fed decision to raise rates by 75 bps was on expected lines, the revisions to the growth and unemployment forecast have raised concerns of recession in the US. The rise, the third since March, and the largest since 1994 comes after inflation surged to 40-year high levels last week.
The action raised the federal funds rate to a range of 1.50% to 1.75%, and Fed officials at the median projected the rate increasing to 3.4% by the end of this year. This compares with an earlier estimate of 1.9%; signaling the continuance of an aggressive rate upcycle. Providing some clarity on the next course of action; Powell said at a news conference “From the perspective of today, either a 50 basis point or a 75 basis point increase seems most likely at our next meeting”. He added, “Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common.”
The Fed now forecasts gross domestic product growth to slow to 1.7% this year compared with a 2.8% expansion projection in March. Unemployment could rise to 4.1% at the end of 2024 from 3.6%.
Subscribe To ET Now For Latest Updates On Stocks, Business, Trading | ► https://goo.gl/SEjvK3
Subscribe Now To Our Network Channels :-
Times Now : http://goo.gl/U9ibPb
The NewsHour Debate : http://goo.gl/LfNgFF
To Stay Updated Download the Times Now App :-
Android Google Play : https://goo.gl/zJhWjC
Apple App Store : https://goo.gl/d7QBQZ
Social Media Links :-
Twitter - http://goo.gl/hA0vDt
Facebook - http://goo.gl/5Lr4mC
G+ - http://goo.gl/hYxrmj
Website - www.etnownews.com