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%.
The Federal Open Market Committee today announced it would raise the target range for the federal funds rate by 50 basis points to 4.25% to 4.5%.
In a speech today, Federal Reserve Chairman Jerome Powell said while inflation remains persistently high, the Federal Open Market Committee may slow the pace of increases in the federal funds rates starting as early as its December meeting.
The “relative inelasticity of supply in key sectors” sets the economy of the past three years (encompassing the COVID-19 pandemic and the Russian war in Ukraine) apart from the 30-year period prior, Federal Reserve Vice Chair Lael Brainard said.
Two members of the Federal Open Market Committee said today that the committee is likely to raise the federal funds rate again in the future and perhaps maintain a restrictive policy stance into 2024.
Against the backdrop of significantly slowing economic growth and a tight labor market, Federal Open Market Committee members agreed to raise the federal funds rate another 75 basis points at their recent Nov. 1-3 meeting, according to minutes released Wednesday.
While borrowers are getting pinched by rising interest rates, senior savers are seeing meaningful returns for the first time in decades, former ABA Chair Laurie Stewart said in an interview on NPR’s “Marketplace” program last night.