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 change did the committee make regarding the long run neutral rate?

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What was the unanimous vote count for the Fed Governor's decision?

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