While some experts believe the work of taming inflation isn't done, Powell noted at the March FOMC meeting that the US economy slowed significantly. What to expect if the Fed doesn't raise rates "The next FOMC meeting in May might be the last interest rate hike of the year," she said. She believes reaching the 2% target rate will take some time. The Federal Reserve Bank has raised the federal funds rate several times since 2022 to combat inflation, pointing to how long it can take to level the economy and inflation. "Inflation goes up like a rocket ship but comes down like a parachute," said Cooper. And it doesn't come down as easily as it goes up. Inflation is the highest it's been in over 40 years, said Chelsea Ransom-Cooper, managing partner and financial planning director at Zenith Wealth Partners. "This will probably lead to banks adjusting rates higher from where we are today." While Sprung expects rates to rise a bit more, he does not expect them to surpass the highs we experienced several weeks ago. "I believe that the Fed will be raising rates by 25 bps at the May meeting," said Lawrence Sprung, a certified financial planner and author of Financial Planning Made Personal. Since we're not quite at the Fed's 2% target range, there's a chance that we'll see another rate hike, but not as significant as last year's 50 to 75 basis point increases. But inflation is still high, at 5% year over year. The latest Consumer Price Index report shows that inflation only rose by 0.1% from February to March - a smaller increase from months prior. But some experts believe the Fed may hike rates once last time in May. Experts are divided on whether the Fed will raise rates again or pause their rate hike.
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