Fed may raise rates to 8%-9%, economist says

The big question racing through the financial markets is how much more the Federal Reserve will raise interest rates.

Since the beginning of the rate hike campaign in March, the Fed has raised the Federal Funds rate by 375 basis points (3.75 percentage points) to a range of 3.75% to 4%. In September, Fed officials predicted interest rates will peak at around 4.6% next year.

But in November, Fed Chairman Jerome Powell said the Fed may have to go further than expected. And now experts, including interest rate traders, have united around a 5% forecast.

Leave a Reply

Your email address will not be published. Required fields are marked *