The Federal Reserve will hike interest rates as high as 5.1% in 2023 before the central bank ends its fight against runaway inflation, according to its median forecast released on Wednesday. The Fed announced a 50-basis-point rate hike Wednesday, taking the borrowing rate to a targeted range between 4.25% and 4.5%, the highest level in 15 years. The so-called dot-plot, which the Fed uses to signal its outlook for the path of interest rates, showed 17 of the 19 “dots” would take rates above 5% in 2023. Seven of the 19 committee members saw rates rising above 5.25% next year.
Source: CNBC
