Federal Reserve raises its key rate for 11th time by a quarter-point in its drive to slow
In a statement, the Fed said the economy “has been expanding at a moderate pace,” a slight upgrade from its assessmentA key question swirling around the Fed is whether Wednesday’s increase will be its last or whether it will hike again later this year.Some Fed officials have said they worry that the still-brisk pace of job growth will lead workers to demand higher pay to make up for two years of inflationary prices.
in which its rate hikes would continue to cool inflation without sending the economy tumbling into a painful recession. Economists at Goldman Sachs have downgraded the likelihood of recession to just 20%, from 35% earlier this year. Those at Deutsche Bank, among the first large banks to forecast a recession, have also been encouraged by the economy’s direction, though they still expect a downturn later this year.Matthew Luzzetti, Deutsche Bank’s chief U.S. economist, has pointed to durable consumer spending as a key driver of growth.
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