The INTEREST rate decision of the US Federal Reserve, which is closely followed by global markets, has become clear. The Fed raised the rate by 25 basis points to 0.50 percent years later. The Fed did not change its unemployment expectations, while its growth expectations changed. The Fed changed its interest rate for the first time in two years and raised rates three years later. “We have 7 meetings this year and we have not decided whether there could be 7 interest rate increases, whether interest rate increases should be front-loaded or continue throughout the year,” Fed President Powell said in a press release after the decision.
The U.S. Federal Reserve raised its interest rate range to 0.25-0.50%. The Fed 8-1 in the interest rate decision. The growth forecast for the U.S. economy has changed. The growth forecast for 2022 has been lowered by 30 percent, from 4 percent to 2.8 percent. Growth for 2023 was maintained as 2.2 percent and for 2024 at 2 percent. Long-term growth expectations remained at 1.8 percent.
The U.S. economy grew 7.0 percent in the last quarter of 2021, according to preliminary data. Final results on growth will be announced on March 30.
Every three months, 17 Fed officials forecast U.S. unemployment, inflation, economic growth and interest rates for the next three years and long periods.