Fed’s Bowman: Further rate hikes likely
Additional increases in the federal funds rate will likely be needed to lower inflation to the Federal Reserve’s 2% goal, Fed Governor Michelle Bowman said.
Additional increases in the federal funds rate will likely be needed to lower inflation to the Federal Reserve’s 2% goal, Fed Governor Michelle Bowman said.
Against a backdrop of tightening credit conditions and higher interest rates expected to continue weighing on the economy, Federal Open Market Committee members decided to maintain the target range for the federal funds rate at 5% to 5.25%, according to minutes from the committee’s June meeting.
More than half of Americans (56%) say they are not financially prepared for a recession, while 40% remained concerned about inflation, according to new survey data from WalletHub.
While inflation has come down substantially since last summer, it is still too high, and by some measures progress has been slowing, Federal Reserve Governor Philip Jefferson said today during an insurance conference in Washington, D.C.
The economic fallout from last month’s bank closures failures led some Federal Open Market Committee members to support a lower increase in the federal funds rate than they had anticipated up to that point, according to minutes of the committee’s March meeting.
Consumers continued to manage their credit well despite economic headwinds in the third quarter of 2022, according to the latest ABA Credit Card Market Monitor released this week.
Recent economic data suggests the Federal Reserve will need to continue to raise interest rates this year to slow inflation and possibly push rates higher than previously projected, Fed Chairman Jerome Powell told lawmakers on the Senate Banking Committee this week.
The current interest rate environment has had “dramatic effects” on the profitability and risk profiles for banks’ funding and investment strategies, FDIC Chairman Martin Gruenberg said this week.
Nearly every member of the Federal Open Market Committee agreed to raise the federal funds rate by 25 basis points at the committee’s most recent meeting at the end of January, according to FOMC minutes released this week.
The Federal Open Market Committee this week announced it would raise the target range for the federal funds rate by 25 basis points to 4.5% to 4.75%.