2023-08-18 18:02:22
Jerome Powell
The Fed chairman has so far left open whether further tightening is imminent or the era of interest rate hikes is coming to an end.
(Photo: Reuters)
Bangalore From the point of view of numerous economists, the US Federal Reserve has probably reached the peak in interest rates. In a poll released by Reuters news agency on Friday, 99 out of 110 economists expect the Fed to hold its key rate hike at its September meeting. 80 percent of those surveyed assume that there will be no more increases in the further course of the year.
The key interest rate would thus remain at the level of 5.25 to 5.50 percent reached in July. A majority of the 95 economists who dared to forecast until mid-2024 expect at least one rate cut by then. This fits in with the assessment of the head of the New York Fed District, John Williams, according to which rate cuts cannot be ruled out in the first half of next year.
Investors are hoping for further information about the monetary policy course from the appearance of Fed boss Jerome Powell at the central bank conference in Jackson Hole next Friday. He has so far left open whether further tightening is imminent or the era of interest rate hikes is coming to an end. Last year he used the symposium in Wyoming, hosted by the Kansas City Fed District, to call for a long fight against inflation.
More: US central bankers at odds over future interest rates
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