**Key Takeaways From the Fed's Rate-Hike Decision and Forecasts**
**By Scott Lanman**
(Bloomberg) -- Here are key takeaways from the Federal Reserve's interest-rate decision and forecasts on Wednesday:
* The Fed raised its benchmark rate by 75 basis points -- the biggest increase since 1994 -- to a range of 1.5%-1.75%, in line with investors' and economists' expectations that shifted on Monday following media reports that the central bank would likely consider such a move in wake of pickup in inflation data; Kansas City Fed President Esther George dissented in favor of a 50 basis-point hike
* New dot-plot projections showed sharp increase from March, with federal funds target rising to 3.4% by year-end -- implying another 175 basis points of tightening this year -- and 3.8% in 2023, before falling to 3.4% in 2024; prior forecasts in March were for a 1.9% rate this year and 2.8% in 2023 and 2024
* A couple of major changes to the statement: FOMC adds a line saying it's “strongly committed to returning inflation to its 2% objective” and removes prior language that said the FOMC “expects inflation to return to its 2% objective and the labor market to remain strong”
* Economic projections showed a much bumpier soft landing expected, with the unemployment rate rising from 3.7% at end-2022 to 4.1% in 2024; growth forecasts were cut to 1.7% in 2022 and 2023, from 2.8% and 2.2% in March; Fed officials still expect inflation to come down significantly in 2023
* Reiterates path on balance-sheet reduction that took effect June 1, shrinking bond portfolio by $47.5 billion a month and stepping up to $95 billion in September
