Federal Reserve to keep interest rates above 4% beyond 2023, economists predict
- September 17, 2022
- Eric Swanson, economics, Financial Times, Sept. 17, 2022
The Federal Open Market Committee has already raised interest rates this year at the fastest pace since 1981 and is expected to implement a third consecutive 0.75 percentage point rate rise on Wednesday. … “The FOMC has still not come to terms with how high they need to raise rates,” said Eric Swanson, a professor [of economics] at the University of California, Irvine, who foresees the fed funds rate eventually topping out between 5 and 6 per cent. “If the Fed wants to slow the economy now, they need to raise the funds rate above [core] inflation.”
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