FED Position14 Dec 2022 20:02
The Fed now sees its benchmark rate rising to a peak, or terminal rate, of 5.1% in 2023, above the 4.6% forecast in September, suggesting at least two 25 basis point rate hikes ahead.
That is slightly higher than market expectations for rates to peak at the high end of around 5%.
The central bank also signaled that its likely to keep rates higher for longer through 2023, disappointing market participants calling for a cut in the second half of next year.The Fed forecasts a cut in 2024 to 4.1%, above the 3.9% projected previously.