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Fed Raises Rates by Half Percentage Point

The agency sees the economy nearing stall speed

Today, the Federal Reserve (Fed) raised interest rates by half a percentage point and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 as well as a rise in unemployment and a near stalling of economic growth.

The U.S. central bank's projection of the target federal funds rate rising to 5.1 percent in 2023 is slightly higher than investors expected heading into this week's two-day policy meeting and appeared biased if anything to move higher.

Only two of 19 Fed officials saw the benchmark overnight interest rate staying below 5 percent next year, a signal they still feel the need to lean into their battle against inflation that has been running at 40-year highs.

Please select this link to read the complete article from Reuters.

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