The Fed announced a final 2022 interest rate hike of 50 bps this afternoon, lifting terminal rate projection to 5.1%.

The increase is expected to impact the economy by driving up rates for some mortgage loans, HELOCs, credit cards and other loans. Since March, when the benchmark rate was close to zero, the Fed has raised it by more than 4 points, a pace not seen since the the early 1980s.

Powell says there are no rate cuts forecast for 2023 and that it’s “unknowable” whether or not we’ll see a recession in 2023.

• The Federal Reserve continued its battle against inflation by raising its benchmark interest rate to the highest level in 15 years.
• The Federal Open Market Committee voted to boost the overnight borrowing rate half a percentage point, taking it to a targeted range between 4.25% and 4.5%.
• Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024.

“Along with the increase came an indication that officials expect to keep rates higher through next year, with no reductions until 2024. The expected “terminal rate,” or point where officials expect to end the rate hikes, was put at 5.1%, according to the FOMC’s “dot plot” of individual members’ expectations.”