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GOBankingRates: Federal Reserve Increases Interest Rates 25 BPS: How it Affects You

Yaël Bizouati-Kennedy | March 22 , 2023

In one of the closest-watched Federal Reserve Board’s Federal Open Market Committee (FOMC) meetings, Federal Reserve officials unanimously stated on Wednesday, March 22 that it would raise interest rates by a quarter point. With this ninth rate increase since March 2022, the Fed was tasked with the tricky balancing act between taming inflation and stabilizing a very turbulent banking sector, which has been rattling markets and made American consumers jittery in the past two weeks.

The Fed also released its projections, noting that unemployment decreased a little, while expected inflation went up.

“The members raised their estimate of interest rates for the end of 2024 and also raised their inflation targets for both core and headline. The lowering of their unemployment forecast for 2023 indicates they continue to be concerned with the strength of the labor market, keeping inflation higher for longer,” said Mace McCain, President, Managing Director and Chief Investment Officer at Frost Investment Advisors.

Excerpted from GOBankingRates on March 22, 2023. To read full article, click here.

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