* Fed Chair Jerome Powell admitted on Wednesday that achieving a soft landing will be 'very challenging'
* Federal Reserve on Wednesday raised its policy rate 0.75 points to 3.25%, the highest since 2008
* US central bank also projected rates will hit 4.4% this year and 4.6% in 2023 - higher than expected
* Fed is attempting to cool down the economy to battle soaring inflation, which stands at 8.3%
* Higher rates mean costlier borrowing, including mortgages and business loans, slowing growth
* But by tamping down the economy, the Fed raises the risk of triggering job losses and layoffs
The Federal Reserve has issued another super-sized increase to interest rates in a move intended to fight inflation, but which deepens the risk of a sharp economic downturn and job losses.
At the end of its two-day policy meeting on Wednesday, the US central bank raised its policy rate by 75 basis points for the third time, to a range of 3 percent to 3.25 percent, the highest level since the 2008 financial crisis.
The Fed is attempting to cool down the economy in order to tame rampant inflation, which remains stubbornly high at 8.3 percent -- but as interest rates climb, the path to a so-called 'soft landing' is narrowing.
Read more ....
Update #1: Fed attacks inflation with another big hike and expects more (AP)
Update #2: Fed goes big with latest rate hike; Powell vows to 'keep at it' (Reuters)
WNU Editor: Bottom line. Unemployment rates are going to climb in 2023. Expect more interest rate hikes, but only after the mid-term elections. And as for inflation, that mess is only going to get worse .... Fed-funds rate could end up as high as 5%, says overseer of $1.3 trillion in assets (Market Watch).
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