Rate Hike Expected After June Pause
The Federal Reserve is meeting again this month, and after a pause in rate hikes in June is widely expected to announce a rate hike for July. This would mark the 11th increase since the beginning of 2022. The expected rate hike is believed to be a quarter percent which would push federal funds rates between 5.25% and 5.5%.
Markets are awaiting Chairman Jerome Powell’s press conference on July 25, 2023, to gather additional information for the future, if more rate hikes are coming, or if the Federal Reserve will begin to loosen its belt. The Federal Reserve still has three meetings for the year in September, November, and December.
The Consumer Price Index peaked at 9.1% back in June of 2022 and is currently sitting around 4.9%, still over double the Federal Reserve’s target rate of 2%.
For more information, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc., at (618) 997-3436.