Most experts estimate there will be more increases this year, though they see a possible temporary pause at this meeting in June and a possible new increase in July. Ten rate increases were implemented in the past year.
The Federal Reserve (Fed) of the United States could announce this Wednesday a temporary halt to the cycle of rate hikes, after the meeting of the members of the Federal Open Market Committee, due to the slight delay in inflation moderation. In the past year there have been ten rate hikes.
While on previous occasions the increases have been expected by most analysts, this time there is no consensus on what will happen next. The Fed will announce the decision today at a press conference with its president Jerome Powell.
Most experts estimate that the ceiling that interest rates can reach has not yet been reached, and that there will be more increases this yearthough they see a possible temporary pause in this June meeting and a possible new increase in July (as well as in September).
While the uncertainty surrounding the meeting is the majority sentiment among economists, a piece of information was released this week that could tip the balance in the direction of pausing the rises: year-on-year inflation fell sharply in Maynine-tenths, to reach 4%, the lowest level since March 2021.
The latest increase, of a quarter point, was announced on May 3. As it became known after the publication of the minutes of the meeting, the participants mainly spoke out insecurity on the opportunity of a further tightening of monetary policy.
According to the technical team preparing the central bank’s projections, the US economy will slow over the next two quarters and a slight recession at the end of 2023before picking up the pace and starting to recover.
After ten consecutive increases, which started in March 2022, the price is currently fluctuating andBetween 5% and 5.25%the highest level since mid-2007.
Source: EITB
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