The Fed rate raise

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Three straight.
Welcome to the Know the Difference Minute for Wednesday, September 21st.
The Federal Reserve policymakers unanimously raised the benchmark interest rate by 75 basis points for the 3rd straight time in a battle to bring inflation under control. In all, there have been 5 rate increases this year. It’s a string of the most aggressive increases since 1994 and a move that threatens to slow economic growth and bring financial pain to millions of households and businesses.
The key benchmark federal funds rate is at a 3% to 3.25% range, the highest since before the 2008 financial crisis. Policymakers expect 4.4% interest rates by the end of the year. That means, another three-quarter percentage point increase is still on the table.
Officials expect to continue raising rates in 2023, before stopping at a termination rate of 4.6%, and modestly lowering beginning in 2024.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.