Powell’s Whatever-it-Takes Moment: Policy “Will Be Enough to Restore Price Stability.” Fed Hikes by 75 Basis Points. Shocker, Sees 4.4% by End of 2022

by Wolf Richter
Wolf Street

“Housing market will have to go through a correction … to where people can afford housing again”: Powell

The FOMC voted unanimously to hike its policy rates by another 75 basis points, the third hike of this magnitude in a row. This brought the target for the federal funds rate to a range between 3.0% and 3.25%.

At every meeting, the Fed has increased its projections where its policy rates would be by the end of 2022. As per its “dot plot” today, the median projection by FOMC members for the mid-range of the federal funds rate jumped by a full percentage point from the last projections, to 4.4%.

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