In today’s announcement, the Fed kept the interest rate unchanged.
Eyes had long been on the Federal Reserve’s decision regarding interest rates. In August, the Federal Open Market Committee (FOMC) kept the policy interest rate steady in the range of 5-5.25 percent, in line with expectations.
Following the announcement, Federal Reserve Chairman Powell, in his speech, indicated preparedness for an increase in interest rates, emphasizing the importance of this approach in maintaining economic stability.
Experts are expressing the view that interest rates will remain steady for some time in the upcoming period and even foresee a single increase by 2024.
-12 Federal Reserve officials are expecting one more interest rate hike.
-7 Federal Reserve officials, on the other hand, do not foresee further interest rate increases.
-The Fed plans to keep interest rates high for an extended period.
-Fed officials are forecasting inflation to be 3.3% at the end of 2023, 2.5% at the end of 2024, and 2.2% at the end of 2025.
-Core inflation is expected to be 3.7% at the end of 2023, 2.6% at the end of 2024, and 2.3% at the end of 2025.