By Malvika Gurung
Investing.com — The US Federal Reserve will be releasing its two-day on Wednesday, along with the updated quarterly economic projections that will provide insights on how intensely and how fast the interest rates will need to be raised to tame the decades-high inflation.
Most investors and market analysts expect the US Fed to raise its policy rate by 75 basis points for the third consecutive time to the 3-3.25% range, while 19% of analysts expect a jumbo 100 bps rate hike.
The US central bank will announce the policy decision at 2 pm Eastern Daylight Time or 11:30 pm Indian time.
The Fed Chair Jerome Powell will be holding a news conference at 2:30 pm EDT to elaborate on the latest policy decision which will signal the tone and size of future interest rate hikes, inflation projection and the likeliness of further ‘pain’ inflicted on the US employment and economic growth going ahead, stated Reuters.
Economists at Deutsche Bank (ETR:) believe the policy rate to rise to around 5% to tame the soaring inflation even if it leads to recession.