The North American Federal Reserve (Fed) on Wednesday said it should raise interest rates again by the end of this year while revising upward its economic growth estimates for 2023 and 2024.
Although the Fed decided to leave interest rates unchanged this Wednesday, between 5.25% and 5.50%, after 11 hikes since March 2022, the Fed expects another hike before the end of 2023.
The Fed also revised upward its forecast for U.S. gross domestic product (GDP) growth for this year, pointing to growth of 2.1%, up from 1% in June.
For 2024, the Fed projects growth to be 1.5%, up from 1.1% in its previous forecasts.
The North American economy is “growing at a strong pace,” the institution said in a statement released after the two-day meeting, as quoted by AFP.