Fed forecasts continued interest rate hikes in 2023

The Federal Reserve has signaled that interest rate increases will continue through all of 2023. Last week, the Fed ended its final meeting of the year by raising its short-term interest rate by half a percentage point, its seventh straight increase this year. Wall Street had been hoping that the central bank would signal an easing of rate increases heading into 2023, but the Fed instead said the opposite. Fed policymakers suggested that the central bank’s rate will go from about 4 and-a-quarter percent to a range of 5 to 5 and-a-quarter percent by the end of next year.