The Fed raised the rate to the highest since 2007

The US Federal Reserve System (FRS) has raised the key rate by 25 basis points, to 4.75-5% per annum. Analysts note that the rate has reached its highest value since 2007. At the previous meeting, the Fed also raised the rate by 25 bps. The average rate forecast for the end of 2023 was 5.1%.

The central bank's decision coincided with the forecasts of most economists, while some experts admitted that the Fed could leave the rate at the same level amid problems in the US banking sector.

The regulator's message also said that inflation in the United States remains elevated and additional tightening of monetary policy may be appropriate. The Fed raised its inflation forecast this year from 3.1% to 3.3%, and kept the forecast for 2024 at 2.5%.

GDP forecasts for the current year and 2024 were worsened – from 0.5% to 0.4% and from 1.6% to 1.2%. The forecast for the unemployment rate for 2023 was lowered from 4.6% to 4.5%, and for 2024 it remained at the level of 4.6%.