HomeEconomyThe Fed raises its reference rate strongly again, by 0.75 percentage points

The Fed raises its reference rate strongly again, by 0.75 percentage points

Faced with inflation that is still high and difficult to control, the US central bank (Fed) raised its reference rates by 75 basis points, an increase as significant as that of last July.

The US central bank (Fed) announced on Wednesday an fifth consecutive rise in its reference ratesraising them again three quarters of a percentage point to place them between 3% and 3.25%, and plans to continue with this movement in the face of inflation, which remains very high.

This is the third consecutive increase from this level of 75 basis points, while inflation is now expected at 5.4% this year against 5.2% expected so far.

The Fed now forecasts almost zero growth for 2022 (+0.2%) compared to the 1.7% forecast in June. It revises its forecasts for the coming years downwards with 1.2% in 2023, 1.7% in 2024 and 1.8% in 2025.

As for inflation, the US monetary institution forecasts inflation of 5.4% in 2022 and then a gradual return to normal: 2.8% in 2023, 2.3% in 2024 and 2% in 2025.

>> More information to come on BFM Business in a few moments. Also watch BFM Business live on video and follow us On twitter.

Author: Frederic Bianchi with AFP
Source: BFM TV

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