US Federal Reserve delivers big rate hike, sees another large move higher this year
WASHINGTON: The US Federal Reserve raised its target interest rate by three-quarters of a percentage point to a range of 3.00%-3.25% on Wednesday and signaled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before top out at 4.60% in 2023 to battle continued strong inflation.
The US central bank's quarterly economic projections, meanwhile, showed the economy slowing to a crawl in 2022, with year-end growth at 0.2%, rising to 1.2% in 2023, well below the economy's pential. The unemployment rate is projected to rise to 3.8% this year and 4.4% in 2023. Inflation is seen slowly returning to the Fed's 2% target in 2025.
Rate cuts are not foreseen until 2024.
The federal funds rate projected for the end of this year signals total rate hikes of another 1.25 percentage points to come in the Fed's two remaining policy meetings in 2022, a level that implies another 75-basis-point hike in the offing.
"The committee is strongly committed to returning inflation to its 2% objective," the Fed said in a statement announcing its third consecutive 75-basis-point hike, which is considerably higher than the quarter-percentage-point increases typical of the Fed.
The Fed "anticipates that ongoing increases in the target range will be appropriate," the statement from its policymaking Federal Open Market Committee said, repeating language from its previous statement in July.
Third World War is on the horizon !
The Fed is making a statement that the inflation will be contained to 2%, which is the base line. RBI increases the rates but does not advise the baseline of inflation. RBI efforts are spoiled by greedy Banks
Our rupee will cross 90 Rs ag inst dollar very soon
US economy is passing through tough time & still they are no ready to compromise with Russia.
Fed chair knows if he doesn't bring Inflation to 2% soon then US de t will become De t bomb!
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Another worry for India. FDI may be restricted in share markets. Most of the companies will sell and go back to USA market.
It is like a person learning swimming jum to monsoon floods.
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East or west yo! India is the best! Baki all amriki countries fail dosto!
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Now we will see more hike in interest rates by RBI as well!!
Indian markets likely to col pse due to rate hikes…Acche din will come only after Modi is gone in 2024 ion and we have educated PM and FM.
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Time to delink the petro dollar .. world is being subjected to this mayhem… hopefully indian interest rates are guarded and it is due to strong leader while other economies are struggling
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When go nment itself become predator
Bureau crats rule and current go nment does not view sympathetically price rise. De acy teaches every one. Seniors neglected.
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There will be another 1000 points down in sensex.
It means that India economy will slow again.
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Gai brains panic men! US economy slowing down always affects the entire world and drags other economies too.
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US just keeps on printing trillions and trillions to pay for all the wars. No wonder inflation is high. That is why US currency is called FIAT CURRENCY..
US go nment never learns no matter how much letters you write to the white house by some college students or critics the po iticians will keep their eyes shut.
They gave 3 trillions in stimulus package.. during Covid. Inflation was bound to happen.
With the rise of inflation across the world, it was inevitable.
High time that the foreign investment should be. Brought
I TRANSFERRED ALL OF MY DOLLARS TO iNDIA TO GET THE BEST . i AM INVESTING IN START UPS AND GETTING 200% RETURN ANNUALLY. INDIA IS BEST. THANK YOU INDIA.
This increases pressure on the RBI as well.
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This will increase dollar rupee difference again.
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so our stock markets will go south till next year