The Federal Open Market Committee raised the federal funds rate target by another 75 basis points and released updated projections reflecting the impact of its campaign against inflation.
Fed Actions: The FOMC’s 75-point rate hike was its third in as many meetings, bringing target interest rates to a range of 3% to 3.25%. The FOMC also said it will continue reducing its securities holdings, emphasizing its commitment to returning inflation to its 2% objective.
Projections: In updated economic projections, the Fed raised expected year-end interest rates to 4.4% from 3.4% in June, shrank its 2022 GDP growth outlook to 0.2% from 1.7%, and raised its projected 2023 unemployment rate to 4.4% from 3.9%.
Key Quote: "We have got to get inflation behind us,” Powell said in a press conference. “I wish there were a painless way to do that. There isn't.”
Next: The FOMC has two more meetings this year, scheduled for Nov. 2-3 and Dec. 14-15.