Also, economists are noticing better business conditions and investors have grown more bullish on the Fed’s chances of pulling off a soft landing, a scenario in which the central bank succeeds at bringing down inflation without tanking the economy.
But right now, there’s no denying there’s optimism in the air.Īmericans haven’t felt this optimistic about the economy and the potential for inflation to ease since 2021. It’s anyone’s guess what will ultimately transpire, since the economy has consistently defied expectations. There are three possibilities for what the Fed might do moving forward, according to economists: a second consecutive rate hike in September, one in November, or no more rate hikes after July. Fed Chair Jerome Powell’s remarks during an annual gathering of central bankers and economists in Wyoming next month could shed more light on what to expect for the September decision. That’s why the Fed is trying to retain the option of another rate increase in case inflation proves to be more resilient than expected.
Much depends on what economic data show in the next eight weeks - and things can go either way. The Fed is debating getting rate hikes out of the way sooner (Graeme Sloan/Sipa USA)(Sipa via AP Images) Graeme Sloan/Sipa USA/AP Federal Reserve, in Washington, D.C., on, Tuesday, March 21, 2023.
0 kommentar(er)
