The US Federal Reserve (“Fed”) said that it is planning rate hikes for FY23. These rate hikes came to light through the Fed’s projections and analyses for the first post-pandemic interest rate hikes and with a specific focus on when and how it would be best.
The US Fed planning its rate hikes is based on an improved health in the economy and vaccinations helped in limiting the spread of COVID. US Fed Chair Jerome Powell, said after the end of a two-day policy meeting, they are considering tapering the central bank’s $120 billion in monthly asset purchases, which officials said would continue until “substantial further progress” has been made toward the central bank’s maximum employment and 2% inflation goals. He continued that in the coming US Fed meetings, the committee will continue to assess the economy’s progress toward our goals. He did not give a timeline or quantum of the planned rate hikes however said that the government will let the markets know when they are about to happen.
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