Fed raises rates by 50 basis points and a target range to 4.5%
After a two-day meeting, the Federal Open Markets Committee said it would raise the federal funds rate by 0.5%, increasing a target range of 4.25% to 4.5%.
In addition, a signal in the meeting showed that Fed officials will keep rates higher through the next meeting, with no reduction until 2024. According to the FOMC’s “dot plot”, the expected terminal rate, or points where officials expect to end the rate hikes, was put at 5.1%. As a result, interest rates can range from 5% to 5.25% next year.
Interest rates can range from 5% to 5.25% next year.
Fed officials believe that raising rates would assist in taking money out of the economy, reducing demand and pulling prices lower after inflation hit its highest level in more than 40 years.
FOMC also lifted its median estimate for CPI to 4.8%, up 0.3% points from the September outlook. Members slightly lowered their unemployment rate outlook in this year and bumped it a bit higher for the ensuing years.
ConsenSys launches zkEVM private beta testnet
ConsenSys, Web3 ecosystem developer, unveiled its zkEVM private beta testnet. The network uses zkEVM technology (Zero Knowledge) and users can test the private beta via a blog post on December 13.
The software has received over 150,000 signups. Users can now bridge assets between the Goerli and the zkEVM to test their smart contract and DApps.
Users onboarding for the new ConsenSys zkEVM will begin in January 2023. According to ConsenSys, there are currently no details regarding how early testers will be rewarded or if there will be a newly issued token tied to the zkEVM.