The Fed increased interest rates by 75 basis points at its June meeting, above expectations.

The US Federal Reserve (Fed) increased the policy rate by 75 basis points to 1.50-1.75 percent. Thus the Fed made the biggest rate hike since 1994.

The Fed stated that it has a strong commitment to returning to its 2% inflation target. It was stated that the Fed would continue to reduce its Treasury bonds and mortgage-backed securities. It was noted that total economic activity appeared to have recovered after the contraction in the first quarter.

The Fed also updated its expectations for economic indicators. Accordingly, the growth expectation, which was 2.8 percent in March, was withdrawn to 1.7 percent at this meeting. 2023 growth expectation was updated from 2.2 percent to 1.7 percent, and the 2024 expectation was reduced from 2 percent to 1.9 percent. The Fed raised its unemployment forecast for this year to 3.7 percent from 3.5 percent.