Rising gas, food prices are not to blameįed officials ratcheted up their rate hike plans amid signs that inflation appears more entrenched than they thought, according to reports by Barclays and The Wall Street Journal.
Hot spot: Inflation is scorching hot in this once-affordable city. What's the hike mean for you? How faster, bigger Fed rate hikes affect credit card, mortgage, savings rates and stocks Fed officials forecast the federal funds rate will end 2022 at a range of 3.25% to 3.5% and next year at close to 4%, according to their median estimate.
The Fed raised its key short-term interest rates by three-quarters of a percentage point Wednesday – its largest hike since 1994 – to a range of 1.5% to 1.75%. It has triggered a brutal market sell-off.
The aggressive strategy is likely to further slow the economy and increases the risk of recession. WASHINGTON – The Federal Reserve rolled out the heavy artillery in its bid to fight a historic inflation spike that has shown little letup.