Bloomberg News reported that Federal Reserve Chairman Jerome Powell was asked how much more interest rates would be raised this year during a private meeting with Republican lawmakers on the 29th. Powell referred to the interest rate dot chart released after last week's policy meeting, which shows where Fed policymakers' interest rate forecasts fall, which means that one more rate hike is expected this year.
That's in line with economists' view that the Fed will only raise rates one more time, at most.
A spokesman for the conservative Republican Research Committee said Powell's schedule to meet with members of the panel had been scheduled before the collapse of Silicon Valley Bank.
The Fed's latest interest rate forecast dot plot released last week shows that officials predict that interest rates will reach 5.1% by the end of this year, that is, a range of 5% to 5.25%, which is 1 yard higher than the current range of 4.75% to 5%. Mere's response to lawmakers was actually to reiterate the Fed's position at the time.
"The latest thing they've admitted is they expect one more rate hike this year," Rep. Kevin Hern, chairman of the Republican Studies Committee, told reporters after meeting with Powell.
Hearn said Powell also told lawmakers it was up to Congress to decide whether to raise the cap on federal deposit insurance, but "he thinks it's a good topic for discussion" and "he does think it's a good thing for the American people and businesses. It’s really important to make sure they think their money is safe. One way to make sure of that is to increase the FDIC deposit insurance limit.”
Nationwide chief economist Boss Jancic believes that if the banking storm does not spread again, it is reasonable to raise interest rates again. EY-Parthenon senior economist Posor also agrees that the Fed is expected to raise interest rates again at the May 2-3 decision-making meeting Interest 1 code.
Economists also stress that bank stress will lead to a squeeze on credit for businesses and households, slowing the economy.
Clarida, the former vice chairman of the Fed, believes that the Fed may raise interest rates one or two more times, and then pause to see how much inflation falls, but it is too unrealistic to expect to start cutting interest rates in the near future.
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