Fed Meeting Looms Over Economy as they Pause Rate Hikes
Posted on 09/20/2023
The U.S. Federal Reserve under Jerome Powell has a meeting beginning Wednesday, and the implications for the economy are enormous. With inflation remaining above the target of 2%, some expect a rate hike this year. They fed funds rate in a targeted range between 5.25%-5.5%, the highest in some 22 years.
The Federal Reserve held interest rates steady in a decision. The committee is indicating it still expects one more hike before the end of 2023 and fewer cuts than previously indicated next year.
That final increase, if realized, would do it for this cycle, according to projections the central bank released at the end of its two-day meeting.
Markets had fully priced in no move at this meeting.
Keywords: Federal Reserve System.