(MENAFN) The US Federal Reserve's economic policy is estimated to be preventive over the end of 2025, as stated by Ryan Sweet, an economist at Moody's Analytics.
The Fed on Wednesday increased its main interest rate by 75 basis points for the third time in a row to tame peak inflation, carrying the federal funds level to the 3.00 percent-3.25 percent range, and also increased its terminal level higher than 4 percent for this year and the next year.
"If there was any doubt that the Federal Reserve was serious about taming inflation, it should be gone after the September meeting of the Federal Open Market Committee (FOMC), as they hiked the target range for the fed funds rate by 75 basis points and signaled a noticeably higher terminal rate than previously thought," Sweet informed Anadolu Agency through email.
The terminal level, the highest spot where the federal funds level is estimated to jump ahead of it is trimming, was increased to 4.4 percent for this year from an estimate in June of 3.4 percent.
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