The Fed expects an economic slowdown due to successive rate hikes

[뉴욕=박재형 특파원] The US Federal Reserve (Fed) expects to raise interest rates up to 4.6% in 2023 before ending the fight against high inflation.

According to the economic forecasts released by the Federal Open Market Committee (FOMC) on the 21st (local time), the Federal Reserve raised the benchmark interest rate by 0.75 percentage points to the highest level since 2008 between 3% and 3.25%.

Fed officials say they expect to raise rates to 4.4% by the end of 2022.

Source: US Federal Reserve

In the dot chart, 6 out of 19 members expected interest rates to be 4.75-5.00%, 6 members 4.50-4.75%, and the other 6 members 4.25-4.50% next year.

The expected median interest rate for next year, shown in the dot chart, is 4.6%, and the committee expects to cut rates three more times in 2024 and four more in 2025.

The Fed expected a slowdown in the economy due to a series of large interest rate hikes. The unemployment rate is expected to rise from 3.7% today to 4.4% by next year, and GDP growth is forecast to be just 0.2% in 2022.

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[상보] Fed raises interest rates 75 basis points… Interest rates expected to peak at 4.6% in 2023

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