Policymakers at the US Federal Reserve voted to lift the federal funds rate by 75 basis points, the single biggest increase since 1994, as the central bank accelerates its effort to rein in inflation.
Fed chairman Jerome Powell is set to provide more comment on the latest decision starting at 4.30am AEST.“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. Policymakers projected raising the benchmark rate to 3.4 per cent by year-end, implying another 175 basis points of tightening this year.The median official saw a peak rate of 3.8 per cent in 2023, and five officials forecast a federal funds rate above 4 per cent; the median projection in March was for 1.9 per cent this year and 2.8 per cent next. Traders in futures markets were betting on a peak rate of about 4 per cent ahead of the release.