The Fed announced the 75 basis points of interest rate hikes, which is the fifth rate hike this year

On September 21, local time, the Federal Reserve Commission announced that it raised 75 basis points between the federal fund interest rate target range to 3%and 3.25%. This is the fifth rate hike this year, and it is also the third consecutive interest rate hike 75 basis points.

Affected by this news, the three major indexes of US stocks turned quickly.

The Federal Reserve has raised interest rate hike economists to worry about economic recession risk

The Fed's interest rate hike has increased the federal fund interest rate to the highest level since 2008. Policy makers also hinted that by early 2023, they are expected to further increase interest rates, far higher than the previous expectations in June.

The Economic prediction announced by the Federal Reserve on the 21st believes that the inflation rate measured by personal consumption expenditure (PCE) in 2022 will reach 5.4%, and it will drop to 2.8%in 2023. According to predictions, US GDP growth in 2022 was only 0.2%, and 1.2%in 2023; by the end of 2022, the U.S. unemployment rate will reach 3.8%, and it will rise to 4.4%in 2023.

Fed officials have previously stated that they are seeking "soft landing" of the US economy and curb inflation by slowing economic growth, but it will not cause economic recession. However, economists are becoming more and more worried that over time, a sharp interest rate hike in the Fed will lead to a significant layoffs and unemployment rates in US companies, and a comprehensive economic recession broke out at the end of this year or early next year. The Associated Press also commented on the report that radical interest rate hikes have increased the risk of US economic recession.

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