![]() Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. ![]() Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account “The Fed will only pause if inflation data cools this summer,” Lu said. If so, the Fed can then afford to take its foot off the gas.īut she added that the central bank has to remain vigilant and try to “squash rising prices,” noting that inflation is like a “hidden tax felt disproportionately by middle America.” Lu said she’s hoping that the rate of inflation will finally start to moderate later this year. “If you asked me about the Fed a week ago, I would have been pretty sure the Fed would raise by half a point in March, but the likelihood of a quarter point hike is now much higher,” said Judith Lu, CEO and founder of Blue Zone Wealth Advisors, citing the worries about Russia and Ukraine. It’s almost impossible to know what will happen in the next few weeks and months. The only thing that seems certain is that market and economic uncertainty is not going away. Strategist: Fed needs to protect economy, not the stock market (The Fed raised rates again in December that year.) The Democrats won control of the House from the Republicans in that election. To the dismay of then-President Donald Trump, the Powell-led Fed raised rates three times in 2018 before the midterms, including one hike in late September. That’s exactly what the agency did four years ago during the last midterm cycle. “The best thing the Fed can do is ignore the fact that it’s a midterm election year and focus on data.” “The Fed can be political by not raising rates,” said Victoria Fernandez, chief market strategist with Crossmark Global Investments. That means the Fed needs to continue monitoring economic reports, and right now, inflation pressures still suggest that there will be more rate hikes in the near future. ![]() Its so-called dual mandate is to maintain price stability and maximum employment, not ensure the status quo on Capitol Hill. The central bank is staunchly apolitical and doesn’t care about the calendar. Others argue that the last thing the Fed will want to do is base its decisions on political calculus. The Fed will look at economic data, not the midterm polls “The Fed could front-end load some rate hikes so to avoid the midterms and stay apolitical,” said Jeff Mortimer, director of investment strategy at BNY Mellon Wealth Management. The Fed typically tries to steer clear of raising rates too close to an election, in this case the November midterms, to avoid any perception that its policies might benefit or hurt a particular party. Here’s why the timing matters: Rate increases could - and likely will - have a negative impact on the markets and the economy. The only question is whether the Fed will boost rates by a quarter of a percentage point or a half-point.īut there are some Wall Street experts who think Fed chair Jerome Powell and his fellow central bankers will look to do as much as they can to curb inflation now in order to avoid more rate hikes in the late summer and fall. ![]() The market currently expect rates to increase 0.25-percentage-points at each of these upcoming three meetings, and the Fed may then hold rates steady for the second half of the year.The Federal Reserve is going to raise interest rates at its next meeting on March 16 to try to put a lid on inflation. The Fed only schedules eight meetings a year, and so does not meet in April. The March and June meetings will be relatively more informative as the Fed will provide updated economic projections. The Federal Reserve slowed its drive to rein in inflation and said further interest-rate hikes are in store as officials debate when to end their most aggressive tightening of credit in four decades.Photographer: Al Drago/Bloomberg © 2023 Bloomberg Finance LPįor the first half of 2023 the Fed’s remaining decision will come on on March 22, May 3 and June 14 with the interest rate announcement coming at 2pm ET and a press conference at 2.30pm ET. Federal Open Market Committee (FOMC) meeting in Washington, DC, US, on Wednesday, Feb. Jerome Powell, chairman of the US Federal Reserve, speaks during a news conference following a.
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