Fed Raises Borrowing Costs While Dialing Back Projections

The Federal Reserve adjusts its benchmark rate and interest on excess reserves, aiming to control the effective Fed funds trading range. The Fed's forecast now includes gradual rate increases, with a focus on monitoring global economic developments. The dot plot indicates fewer rate hikes next year, with a lower long-run neutral rate. Economic projections show weaker growth and stable unemployment, with inflation slightly rising. The Fed's unanimous vote reflects these updates, with new Governor Mickey Bowman participating for the first time.

What is the new range for the Federal Reserve's benchmark rate?

• 2.25% to 2.5%

• 3% to 3.25%

• 1.5% to 1.75%

• 2.75% to 3%

How many rate moves does the dot plot suggest for next year?

• Two

• Three

• Four

• One

What is the revised long-run neutral rate according to the Federal Reserve?

• 3.5%

• 3.1%

• 2.8%

• 2.5%

By when is unemployment expected to begin rising, according to the latest projections?

• End of 2020

• Beginning of 2020

• End of 2019

• Beginning of 2021

Who voted for the first time in the unanimous decision?

• Lael Brainard

• Janet Yellen

• Mickey Bowman

• Jerome Powell