Fed may raise the rate to 5% in 2023
2022.12.02 09:56
[ad_1]
Fed may raise the rate to 5% in 2023
Budrigannews.com – In May, the Central Bank expects an increase in the strategic rate above 5 after the administration’s report, which on Friday gave little indication that the market had cooled, although the national bank had increased the commission for loans even before that.
Contracts related to Fed rates have so far implied a 70 percent chance that Central Banks will slow down the pace of rate increases at the December 13-14 meeting, rather than increase the number of rate increases by 75 basis points during the last four meetings, although the Labor Department report shows that American employers have added more jobs than expected for November.
However, traders believed that in the coming year the Fed would continue to raise its rate in order to accelerate the economy, increase demand for labor and goods and services. Fed Chairman George Powell said last week that the labor market was “too big” to lower prices.
Depending on the prices of futures contracts and CME instruments, the Fed is now expected to raise the discount rate from the current level of 3-75 percent to 4-4.92 percent by March of this year, and more likely to the level of 5-5.25 by May.
Before the report, the indicator was supposed to be completed at the level of 4-75-5 before the report.
[ad_2]
