Breaking: 13 Fed policymakers see first rate hike in 2023

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The US Federal Reserve’s updated Summary of Projections revealed on Wednesday that seven policymakers see a lift-off in the fed funds rate from zero in 2022, compared to four policymakers in March’s publication. Additionally, the number of policymakers who see a lift-off in the fed funds rate from zero in 2023 rose to 13 from seven in March. 

Follow our live coverage of the FOMC decision and the market reaction.

Market reaction

With the initial market reaction, the US Dollar Index shot higher and was last seen rising 0.45% on a daily basis at 90.92.

Key takeaways from Summary of Economic Projections

“Fed’s median view of fed funds rate at end-2023 0.6% (prev 0.1%).”

“Fed’s median view of fed funds rate in longer run 2.5% (prev 2.5%).”

“Fed sees US GDP growing 7.0% in 2021 (prev 6.5%), 3.3% in 2022, 2.4% in 2023; median long-run forecast at 1.8% (prev 1.8%).”

“Fed sees year-end US jobless rate at 4.5% in 2021 (prev 4.5%), 3.8% in 2022, 3.5% in 2023; median long-run forecast at 4.0% (prev 4.0%).”

“Fed sees PCE inflation at 3.4% in 2021 (prev 2.4%), 2.1% in 2022, 2.2% in 2023.”

“Fed sees core PCE inflation at 3.0% in 2021 (prev 2.2%), 2.1% in 2022, 2.1% in 2023.”

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