Powell Points Republicans to Forecasts Showing One More Hike

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Powell Points Republicans to Forecasts Showing One More Hike
Credit: © Reuters.

(Bloomberg) -- Federal Reserve Chair Jerome Powell, asked in a private meeting with US lawmakers how much further the central bank will raise interest rates this year, pointed to policymakers’ latest forecasts showing they anticipate one more increase, according to Republican Representative Kevin Hern.

Hern is the chairman of the Republican Study Committee, the group of conservatives with whom Powell met on Wednesday.

The Fed chief was essentially recapping what policymakers made clear last week when they released new interest-rate forecasts, known as the Fed’s dot plot, following their two-day meeting in Washington. 

“The most recent one that they’ve acknowledged is they anticipate one more rate hike this year,” Hern, of Oklahoma, told reporters after the meeting with Powell.

Fed officials raised interest rates by a quarter percentage point, continuing their yearlong fight to cool price pressures despite recent turmoil in the banking system.

The move lifted their policy benchmark to a 4.75% to 5% target range, from near zero in March 2022.

Forecasts released at the same time show the 18 officials expect rates to reach 5.1% by the end of the year, according to their median projection, implying one more 25 basis-point hike. 

©2023 Bloomberg L.P.

 

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  • laxman Rao @laxman Rao
    While they keep increasing the Fedrate, where should the the common people go??? There's always a saying poor becomes more poor and richer becomes more richer.... Not at all fair govt.
    Like 2

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