FED Interest Rate Projections and Future Economic Condition expectations

On 16 March 2022, The U.S. Federal Reserve (FED) raised interest rates by 0.25% to an actual level of 0.5%. The change in interest rates will affect the other rates charged to consumers and businesses. Interest rates have increased for the first time since 2018.

Future Projections

FED introduced an aggressive plan to push borrowing costs to restrictive levels for the following year. That is a part of a strategy to reduce the impact of the coronavirus pandemic, to mitigate the economic risks related to excessive inflation and financial implications of the Russia-Ukraine war.

Earlier in January 2022, many economists expected an increase in interest rate; however, Russia-Ukraine war conditions accelerated the process. 

Policymakers in the FED projected that the rate might further...

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