Economists Predict Interest Rates to 5.1% by Years End
New year, new news about the Federal Reserve raising rates. Many economists are now predicting that the Federal Reserve is likely to raise rates between 5-5.25% this year. The hope is that with rates that high inflation will continue to drop closer to the Fed’s 2% target.
In March of 2022, the rates were near zero as we were just coming out of the COVID-19 pandemic. With inflation rampaging late last year, the consumer price index 6.4% higher than last year’s, and this month’s stronger-than-expected jobs data, we can expect Jerome Powell’s higher for longer to continue.
The stock market continues with its belief that the Federal Reserve will cut rates by December, as rates continue to go down.
When more news emerges, you can count on this blog to keep you up to date. Hopefully, some good news emerges when the next CPI report is released.
For more information, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.
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