The Fed steps it up

The 75 basis point increase in the short-term lending rate is the largest since August 1994.

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The Fed does it.
Welcome to the Know the Difference Minute for Wednesday, June 15th.
High inflation, diving consumer confidence, and an economy starting to chug. It was enough to lead the Fed today to step on the 75 basic point increase in the short-term lending rate—the largest since August 1994.gas and roll out a The move puts the key benchmark federal funds rate between 1.50% to 1.75.
There’s also an aggressive path forward with increases. Policymakers now expect interest rates to hit 3.4% by the end of 2022, the highest level since 2008. That’s in contrast to the March estimate of 2.5% by year-end.
The current expectation is for rate hikes to peak at 3.8% in 2023 with a forecast of modest rate cuts in 2024– a sign that the Fed could be bracing for a slowdown in coming years.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.