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Thursday
September 2022
7:03 AM IST
News Headlines
Global recession increasingly likely as cost of living soars: Chief economists' survey        Digvijaya Singh leaves for Delhi, likely to file nomination for Cong president election        Surya,Rahul lead India to eight wicket win against South Africa        Malayalam actresses alleges sexual assault at mall in Kozhikode        Extension of free ration scheme will benefit crores of people, ensure support in festive season: PM Modi        Rabies        Cong prez poll: Gehlot indicates he can enter fray, Tharoor meets Mistry; notification to be out Thursday        J&K: SIA conducts raids in suspected terror funding case        Five booked for gang rape of woman seen walking naked in video on social media: Police        Queen’s name inscribed on chapel stone in UK, to open to public soon        'Not a bluff': Vladimir Putin calls up 300,000 reservists to take on West        Fed delivers third-straight big hike, sees more increases ahead        DGCA orders SpiceJet to continue operating at 50% capacity till Oct 29        ATKMB player Ashutosh Mehta fails dope test, banned for 2 years        Gujarat men, West Bengal women clinch TT team gold        You can't tell people "I am an opener or I am a finisher": Samson        KIDNEY DISEASE: EXPLORING THE REALITY AND MYTHS        Fearing defeat in Gujarat polls, BJP trying to 'crush' AAP in name of fighting corruption: Kejriwal        27 killed, 20 injured as bus carrying people to COVID quarantine centre crashes in China        President Murmu offers tribute to Queen Elizabeth II ahead of her state funeral        
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Business News
Fed delivers third-straight big hike, sees more increases ahead
 
Bloomberg: Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023, stepping up their fight to curb inflation that’s persisted near the highest levels since the 1980s.

In a statement Wednesday following a two-day meeting in Washington, the Federal Open Market Committee repeated that it “is highly attentive to inflation risks.” The central bank also reiterated it “anticipates that ongoing increases in the target range will be appropriate,” and “is strongly committed to returning inflation to its 2% objective.”

The decision, which was unanimous, takes the target range for the benchmark federal funds rate to 3% to 3.25% -- the highest level since before the 2008 financial crisis, and up from near zero at the start of this year.

Officials expect the benchmark rate to rise to 4.4% by year end and 4.6% during 2023, according to the median estimate in updated quarterly projections published alongside the statement. That indicates a fourth-straight 75 basis-point hike could be on the table for the next gathering in November, about a week before the midterm elections.

Further ahead, rates were seen stepping down to 3.9% in 2024 and 2.9% in 2025.

The projections, which showed a steeper rate path than officials laid out in June, underscore the Fed’s resolve to cool inflation despite the risk that surging borrowing costs could tip the US into recession.
Before the release, traders expected rates to reach 4.5% in early 2023 before falling about a half point by the end of the year.

Powell and his colleagues, slammed for a slow initial response to escalating price pressures, have pivoted aggressively to catch up and are now delivering the most aggressive policy tightening since the Fed under Paul Volcker four decades ago.

The updated forecasts also showed unemployment rising to 4.4% by the end of next year and the same at the end of 2024 -- up from 3.9% and 4.1%, respectively, in the June projections.

Estimates for economic growth in 2023 were marked down to 1.2% and 1.7% in 2024, reflecting a bigger impact from tighter monetary policy.

Inflation peaked at 9.1% in June, as measured by the 12-month change in the US consumer price index. But it’s failed to come down as quickly in recent months as Fed officials had hoped: In August, it was still 8.3%.

Job growth, meanwhile, has remained robust and the unemployment rate, at 3.7%, is still below levels most Fed officials consider to be sustainable in the longer run.

The failure of the labor market to soften has added to the impetus for a more-aggressive tightening path at the US central bank.

Fed action is also taking place against the backdrop of tightening by other central banks to confront price pressures which have spiked around the globe. Collectively, about 90 have raised interest rates this year, and half of them have hiked by at least 75 basis points in one shot.


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Sensex, Nifty nearly 1 pc on global recession fears
IT Cos' sombre profit story continues as Infosys misses profit estimates
KERALA NEWS
Malayalam actresses alleges sexual assault at mall in Kozhikode
 Kozhikode: In a shocking revelation through her post on Instagram, a popular Malayalam film actress  
Railway stations are being developed like airports: PM Modi
Family washed away in Kerala landslide
Sri Lankan Health Minister calls on Kerala CM
INTERNATIONAL NEWS
Queen’s name inscribed on chapel stone in UK, to open to public soon
 London, Sep 21 (PTI) Queen Elizabeth II’s name has been inscribed on a new ledger stone alongside he
'Not a bluff': Vladimir Putin calls up 300,000 reservists to take on West
27 killed, 20 injured as bus carrying people to COVID quarantine centre crashes in China
President Murmu offers tribute to Queen Elizabeth II ahead of her state funeral
NATIONAL NEWS
Digvijaya Singh leaves for Delhi, likely to file nomination for Cong president election
 New Delhi: Senior Congress leader Digvijaya Singh on Wednesday night left Kerala for Delhi and is li
J&K: SIA conducts raids in suspected terror funding case
Five booked for gang rape of woman seen walking naked in video on social media: Police
CUET-UG results to be announced by September 15
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