UPDATE - US Federal Reserve signals 6 more interest rate hikes for 2022

UPDATES WITH ADDITIONAL PROJECTION FIGURES

By Ovunc Kutlu

ANKARA (AA) - The US Federal Reserve signaled Wednesday six more interest rate increases for the remaining of 2022 after it raised rates by 25 basis points to range between 0.25% and 0.50%.

The Fed's median federal funds rate projection was raised to 1.9% for 2022, which means the central bank can hike rates by 25 basis points in each of its remaining six meetings this year.

The previous projection in December was 0.9% for the year.

The Fed's median federal funds rate projection for next year was raised to 2.8% from the previous level of 1.6% made in December.

This means the central bank can make an additional three rate hikes of 25 basis points each next year.

It does not, however, indicate any more rate hikes for 2024.

The Fed also raised its 2022 inflation projection to 4.3% from 2.6%, according to its projections.

The central bank expects inflation will fall to 2.7% next year and decline further to 2.3% in 2024. That level, however, would still be above its inflation target of 2%.

The new inflation projections for 2023 and 2024 are also higher than previous expectations, which stood at 2.3% and 2.1%, respectively, in December estimates.

Its expectation for unemployment rate remained unchanged at 3.5%.

The unemployment rate is expected to again average 3.5% next year and slightly decline to 3.4% the year after.

The projection for the 2022 economic growth was lowered to 2.8% from an estimate of 4%.

The Fed expects gross domestic product (GDP) growth to come at 2.2% in 2023. The GDP growth for 2024 is forecast at 2%, according to the latest projections.

Both estimates were kept unrevised from the December projections.

The Fed's next two-day meeting will take place on May 3-4.