The Federal Open Market Committee is expected to raise rates by a quarter point to a range of 5.25% – 5.5%, marking the 11th increase since the start of 2022.
This is reported by Bloomberg.
Analysts suggest investors will be listening for clues from the Federal Reserve Chairman about how determined the central bank is to raise the base rate in 2023. As inflationary pressure decreased last month, investors see Wednesday's decision as nearly certain, but do not anticipate additional increases, while the FOMC in June scheduled the final rate hike later this year.
A July hike would follow a pause in June intended to slow the pace of rate hikes as they approach a level considered restrictive enough to eventually return inflation to the target rate of 2%. Nevertheless, Federal Reserve Chairman Jerome Powell and other policymakers will want to sound determined to avoid a repeat of sharp price rises.
"They want to avoid the mistakes of the 1970s and ’80s when they took their foot off the brake prematurely," said Kathy Bostjancic, chief economist at Nationwide Life Insurance Co.
Background. Mind previously reported that the Federal Reserve was likely to raise rates this year.