The Committee decided to raise the FED interest rates by 75 basis points to the range of 3.0-3.25 percent. In addition, the Fed will continue to to reduce its mortgage-backed securities.
The Committee is strongly committed to returning inflation to its 2 percent objective. The PCE inflation expectation for 2022 was raised from 5.2 percent to 5.4 percent. The 2023 expectation regarding this data was also increased from 2.6 percent to 2.8 percent. A drastic downward revision was made in growth expectations for this year. The Fed, which predicted that the US economy will grow by 1.7 percent in its projections for 2022 in June, reduced this expectation to 0.2 percent. The 2023 growth expectation was reduced from 1.7 percent to 1.2 percent.
Source: Federal Reserve
Post by: Republic of Türkiye Ministry of Trade