Interest Rate Hikes Are More Likely Than Cuts This Year, One Economist Predicts Ahead of Fed Meeting
The Fed paused the federal funds rate at a target range of 5.25% to 5.5% in August last year after raising interest rates 11 times between March 2022 and July 2023. Inflation reacted quickly, dropping from its high of 9.1% in June 2022 to 3% one year later. But inflation has been hovering around 3% since then, above the Fed’s target rate of 2%.