The Federal Reserve is expected to keep interest rates steady after the first two meetings this year

 

- Interest rate expected to reach five percent

Mumbai: After raising the interest rate twice by 25 basis points in the next two consecutive meetings, there is a consensus that the US Federal Reserve will keep the interest rate steady for the rest of 2023. The interest rate is expected to reach five percent in the current year.

A majority of Federal Reserve officials are reported to agree that the Federal Reserve should slow the pace of monetary policy tightening to assess the impact of interest rate hikes so far.

In 2022, the interest rate has been increased by 4.25 percent by the Federal Reserve. In most of the seats, this increase was half to quarter percent.

With inflation falling, the Federal Reserve will slow down interest rate hikes by 25 basis points, 83 percent of economists polled by a news agency said. The next meeting of the Federal Reserve's Open Market Committee is on January 31 and February 1. Thus, in 2023, the interest rate of the Federal Reserve may be between 4.75 and 5 percent. This rate will be the highest since mid-2007.