Fed watchers expect a rate hike of 0.75 percentage point, the first such increase since 1994. This would lift the Fed's short-term target policy rate to a range of 1.5% and 1.75%.Register now for FREE unlimited access to Reuters.comThe Fed will also release updated projections for economic growth, inflation, unemployment and interest rates for the next several years from all 18 central bankers.
"Getting in front of the problem is always better than being behind the curve," Piper Sandler economists Roberto Perli and Benson Durham wrote, adding that a bigger move now makes it less likely the Fed will have to do more later, but also raises the likelihood of a recession next year. Powell also said he expects the Fed's fight against inflation to be painful, though he has repeatedly sought to assure Americans the Fed will try to slow the economy and inflation without boosting unemployment too sharply from its current healthy level of 3.6%.
Source: Loan Digest (loandigest.net)
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