Associated Press (12/14/22) Rugaber, Christopher

The U.S. Federal Reserve announced a substantial increase in its benchmark rate, now ranging from 4.25% to 4.5%, the highest in 15 years, aiming to combat the highest inflation levels in four decades. Chair Jerome Powell emphasized the necessity of significantly higher rates to address inflation concerns. Projections indicate a further increase to 5% to 5.25% by the end of 2023. However, the Fed anticipates slower economic growth and increased unemployment, with the unemployment rate forecasted to rise to 4.6% by the end of 2023, signaling potential recessionary conditions. Additionally, the Fed revised its economic growth forecast for next year to just 0.5%, significantly lower than previous estimates.

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