Federal Reserve Chairman Jerome Powell said in a closed-door meeting on Wednesday that he expects only one more rate hike this year.

(Associated Press file photo)

[Compile Lu Yongshan/Comprehensive Report] Chairman of the Republican Research Committee (RSC) and Congressman Kevin Hern revealed that Fed Chairman Jerome Powell was asked in a closed-door meeting on Wednesday whether he would By how much it would raise rates, the latest forecasts from policymakers showed they expected just one more rate hike this year.

The RSC is composed of Republican conservative congressmen, and Ball is meeting with members of the RSC this time; an RSC spokesman said the meeting had been arranged long before the collapse of Silicon Valley Bank (SVB).

Please read on...

Fed policymakers held a two-day monetary policy meeting in Washington last week and released their latest interest rate forecasts. Powell effectively reiterated the Fed's position; Hearn told reporters after the meeting with Powell: "They Only one more rate hike is expected this year."

It is predicted that the terminal interest rate will come to five.

one%

Despite the recent pressure on the U.S. banking system due to the collapse of SVB, the Fed still raised interest rates by one yard (0.25 percentage points) after last week's monetary policy meeting, continuing to work hard to cool down inflation. Four.

Between seventy-five percent and five percent, and rates were only close to zero at this time last year.

The interest rate dot plot released by the Fed at the same time shows that policy makers predict that the end-point interest rate this year will reach five.

One percent means only one more rate hike.

However, interest rate futures show that the market expects that the Fed will not raise interest rates this year, and will begin to cut interest rates as soon as September; according to the Chicago Mercantile Exchange FedWatch tool, the market predicts that the probability of the Fed not raising interest rates in May is 53.

5%, the probability of raising interest rates by one yard is 46.

five%.

Hearn said Powell also pointed out to them that it was up to members of Congress to decide whether to increase the cap on federal deposit insurance, and that it was an issue worth discussing, "so that the American people and businesses can ensure that their money is safe, That's important," and one way to do that would be to raise the cap on federal deposit insurance.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.