The Fed has hiked its policy rate significantly this year from near zero to a 4.25%-4.50% range, the highest since late 2007. Last week, the Fed projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023.
Moreover, while the U.S. economy grew at a 2.9% annual rate in the third quarter, the unemployment rate is near a 50-year low. The Federal Reserve last week lowered its forecast for growth in the United States next year to just 0.5% and a jobless rate rising to 4.6% by the end of 2023.
