News Interest Rate Cut to 44 by the end of this year… Feed aggressive walking tips

The US central bank (Fed) announced on the 21st (local time) that it would raise the key interest rate to 4.4% by the end of the year. This means that the base rate, which is 3.0-3.25% due to the increase of 75bp (1bp = 0.01% point) on the day, can be raised further to around 140bp within the year.

The Fed announced it would raise its key interest rate by 75 basis points in a statement after the regular FOMC meeting on the same day. At the same time, the Fed predicted the interest rate level at the end of this year at 4.4% through a dot plot (an indicator showing interest rate forecasts with dots). After raising the base rate to 4.6% at the end of next year, it is expected to maintain the level of 3.9% in 2024.

Judging from the dot chart alone, it can be interpreted that there is a high possibility that the increase in the base rate will stop and turn to a rate cut in the second half of 2023 or 2024 at the earliest.

Earlier, at the FOMC in June, the base rate was expected to be 3.4% at the end of this year, but it was raised by 1.0 percentage points at a time.

Washington = Correspondent Jeong In-seol surisuri@hankyung.com

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