It raised the key interest rate by half a percentage point on Wednesday – to a range of 4.25 to 4.50 percent. The central bank had previously raised the monetary policy level by 0.75 percentage points in four giant steps in a row.
This obviously had an effect: Recently, there have been growing indications that high inflation is on the way out. The US inflation rate fell to an annual low of 7.1 percent in November. Fifth straight drop raises hopes that US inflation is past its peak.
The monetary watchdogs have now signaled that they will be less bold when it comes to raising interest rates next year: they estimate that the key interest rate will average 5.1 percent by the end of 2023. Many investors are betting that the peak in interest rates will be reached in just a few months. However, central bank chief Jerome Powell has repeatedly emphasized that the Fed must have staying power in the fight against high inflation.
The Fed expects slightly higher economic growth this year than assumed just three months ago. The gross domestic product (GDP) of the world’s largest economy is expected to grow by 0.5 percent, as the Fed announced in Washington on Wednesday. That would be 0.3 percentage points more than forecast in September. For the coming year, however, the Fed is lowering its forecast by 0.7 percentage points to an economic growth of just 0.5 percent.
more from economy
The number of bankruptcies is increasing because too many companies have received state aid for too long
Asfinag wants to set up more charging stations for e-cars
Nuclear fusion: the fulfillment of a dream of mankind?
Generational change in the metallers
My themes
For your saved topics
found new items.
info By clicking on the icon you add the keyword to your topics.
info
Click on the icon to open your “My Topics” page. They have of 15 tags saved and would have to remove tags.
info By clicking on the icon you remove the keyword from your topics.
Add the theme to your themes.
Source: Nachrichten
