11/21/2023 0 Comments Fed next meeting date 2017![]() ![]() However, the second half of the year depends on how the economy fares, if it weakens, then the Fed could be cutting rates later in 2023. In 2023, the first half of the year is expected to see the Fed reach a point where it can hold rates steady. However, high rates are also disrupting the housing market. The Fed expects holding rates here to be effective in bringing down inflation, and we’re seeing some signs that that may be working in late 2022, based on softer inflation numbers. ![]() Some meetings are associated with a Summary of Economic Projections (SEP). Rates at this level are viewed as restrictive for the economy. At each meeting, the committee discusses the outlook for the U.S. The Fed may hold rates within a 4% to 5% band for some time in 2023. However, this is viewed as a less likely scenario currently. However, some fear that prospects of a recession, will mean that the Fed may feel the need to cut rates later in 2023. This means that Fed may reach a point to hold rates steady around the spring. At the March 15 meeting, the Fed also began QE4 which included monthly purchases of 80 billion of agency debt and 40 billion of mortgage-backed securities. Smaller hikes at the February and March meetings are considered probable, based on interest rate futures. An increase in rates is expected at the Fed’s last meeting of 2022. The question is how soon, and at what level, the Fed stops hiking rates.ĭespite a move to a pause in rates, that may not occur rapidly. Should inflation data continue to ease, then it’s likely the Fed will cease hiking rates aggressively. The key question that is likely dominate early 2023 is how to handle a pause in interest rates. Of course, the Fed can set rates whenever it wishes, but we’ll only see rate decisions in these months if something more dramatic happens to the economy. In 2023, there won’t be any rate announcements in January, April, August and October. The Federal Reserve FOMC meeting is a gathering of the Federal Open Market Committee, the policy-making arm of the Federal Reserve System. ![]()
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