Key Takeaways From Fed Decision To Raise Rates 75 Basis Points

Here are key takeaways from the Federal Reserve's interest-rate decision and economic projections on Wednesday:

• Fed raises its main rate 75 basis points, as anticipated, to a range of 3% to 3.25%, while new projections from officials show a median estimate of 4.4% at the end of 2022 and 4.6% at the end of 2023

• While Wednesday's decision was unanimous, the dot plot shows 10-9 majority in favor of hiking above 4.25% this year, suggesting a fourth straight 75 basis-point increase in November is possible

• Policy makers expect rates will be cut in 2024, to about 3.9%, and to 2.9% in 2025

• Statement is virtually identical to prior FOMC meeting in July; Fed says recent indicators “point to modest growth” in spending and production, compared with July's language that the data had “softened”

• GDP growth forecasts marked down to 1.2% in 2023 and 1.7% in 2024, below the longer-run trend; unemployment seen rising to 4.4% in 2023

(Bloomberg) -- For Bloomberg's TOPLive blog on the Fed decision and press conference, click here

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