Dallas Fed President Lorie Logan said on Jan. “Comerica forecasts for the Fed to gradually begin reducing interest rates starting in September as the unemployment rate moves above 4% and inflation continues to cool,” added Adams.įed officials have also acknowledged that it takes time to fully assess how high rate hikes can affect the overall economy, and the need to balance fighting inflation while avoiding a recession. “Year-over-year inflation is still far above 2% and the unemployment rate is at a half-century low, so the Fed will probably keep raising rates in early 2023, but by much less than in 2022,” said Bill Adams, Chief Economist for Comerica Bank.Īdams added that Comerica forecasts quarter percentage point rate hikes at the Fed’s first two meetings of 2023, in early February and mid-March, and then for the central bank to go on hold until the fall. This latest, smallest hike followed four consecutive 75 bps hikes. “Beyond that, we still have a considerable way to go toward our 2% inflation goal, and I expect to support continued tightening of monetary policy, ” he said, according to his prepared remarks.Īt the December 2022 meeting, in a move that was widely anticipated, the Fed Reserve unanimously raised interest rates by half a point for its last meeting of the year. Christopher Waller, who said in a speech at the Council on Foreign Relations on Jan 20 that he currently favors a 25 basis point increase at the next FOMC meeting. Several Fed officials have hinted at a slowing of hikes in recent days, including Gov. Learn: How To Stay Safe When Using Mobile Banking Apps ![]() See: 2023’s Housing Correction Could Be the Largest Since Post-WWIIįind: Get Your Credit Score On Track With These 3 Tips for Success 1 to decide on the next interest rate hike. ![]() The Federal Reserve’s Federal Open Market Committee (FOMC) will meet for the first time this year on Jan.
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