New York, Wednesday, 02 November 2022
At its meeting in November 2022, the Federal Reserve is widely anticipated to increase the target range for the federal funds rate by 75 basis points to 3.75%-4%.
Borrowing rates would rise to a new high since 2008 as a result of the sixth consecutive rate hike and the fourth straight three-quarter point increase. Investors anticipate that the central bank would nevertheless hint at or leave open the possibility of scaling back its rate increases starting as early as December.
For the end of the year, the odds are currently split between another massive 75bps rate hike and a 50bps increase.
New economic figures have shown that the economy is strong and resilient, albeit some signals of a downturn are beginning to appear, particularly in the property sector, and inflation is still hovering around 40-year highs.
(Source: Federal Reserve // Edited by: The Decision Maker - Finance editors)