Powell says Federal Reserve still has a ‘ways to go’ after half-point hike

By Steve Matthews

14 Dec 2022 · 3 min read

Editor's Note

The head of the Federal Reserve has pushed back against bets that the central bank will reverse course next year. That means interest rates almost certainly have further to rise, Bloomberg reports.

The Federal Reserve downshifted its rapid pace of interest-rate hikes while signaling that borrowing costs, now the highest since 2007, will rise more than investors anticipate as central bankers seek to ensure inflation keeps cooling.

The Federal Open Market Committee raised its benchmark rate by 50 basis points to a 4.25% to 4.5% target range. Policymakers projected rates would end next year at 5.1%, according to their median forecast, before being cut to 4.1% in 2024 - a higher level than previously indicated.

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