Expectations of Further Rate Hikes in 2023
⬆️ Expectations of Further Rate Hikes in 2023.
Federal Reserve officials expect to raise interest rates further this year to combat excessive inflation in the United States, according to Chair Jerome Powell. However, the Fed decided to keep interest rates unchanged last week in order to assess the impact of higher borrowing rates on the economy. The contrast between the Fed's concern over inflation and its decision to skip a rate hike has raised uncertainty about its next moves. Powell emphasized the importance of striking a balance and taking a more moderate pace in rate hikes to avoid causing a deep recession. While a rate hike in late July seems likely, future actions will depend on economic data and whether inflation is falling back to the target level.