Fed interest rate

The FOMC meeting is today. Follow along for live updates leading up to the interest rate decision and Fed Chairman Jerome Powell's news conference.

] [The Fed's next meeting is from March 21 to 22.] [Fed 2023 meeting schedule ] [Here are the] [ remaining meetings ](https://www.usatoday.com/story/money/2022/12/13/federal-reserve-2023-meeting-schedule/10887436002/)for the year: ] [To see how the Fed's rate hikes have impacted other areas of the economy like home sales, the stock market and more be sure to read Jim Sergent's ] [piece](https://www.usatoday.com/in-depth/graphics/2023/01/31/fed-rate-hikes-jobs-housing-stock-market/11105988002/). [Super Bowl favorites like guacamole, chicken wings will cost less this year](https://www.usatoday.com/story/money/2023/01/30/super-bowl-food-inflation/11129278002/) [How Fed rate hikes impact credit card rates] [The interest rates banks charge on their credit cards are tied to the prime rate, which is tightly linked to the Fed funds rate. ] [The] [ latest CPI report](https://www.usatoday.com/story/money/2023/01/12/cpi-report-data-release-gas-prices-inflation-december-2022/11034854002/) found prices for goods and services were 6.5% higher than a year ago. [They're on the rise as homebuyers cope with high interest rates](https://www.usatoday.com/story/money/personalfinance/real-estate/2023/01/22/mortgage-rate-buydown-lower-interest-rates/11077611002/) [Fed already has January jobs report data ] [The first jobs report of the year is due on Friday. However, they've come down from a November peak of over 7%, the highest level since 2002.] [The fall in mortgage rates is ] [spurring demand from homebuyers](https://www.usatoday.com/story/money/personalfinance/real-estate/2023/01/18/mortgage-interest-rate-dip-real-estate/11076367002/), USA TODAY's Bailey Schulz reported citing recent data from the Mortgage Bankers Association. [See how much fed interest rates have affected how much you pay](https://www.usatoday.com/story/graphics/2023/02/01/interest-rates-mortgage-rates-auto-loans-increased/11153068002/) [Fed rate hike announcement time] [The Fed's decision on interest rates comes out at 2 p.m. Four of the seven hikes were in 75 basis-point hikes, two were 50 basis-point hikes and one was a 25 basis-point hike.] [Bitcoin price ] [Bitcoin is down slightly this morning. Another seat is filled by the President of the New York Fed and the remaining four seats are a rotating group of presidents from the 11 other regional Fed banks. The FOMC is a group of 12 people who vote on interest rate decisions.] The central bank is expected to raise its short-term interest rate by a quarter percentage point, a slowing of last year's aggressive pace of hikes. Over the course of 2022, the Fed passed four 75-basis-point rate hikes.

The Federal Reserve is expected to raise its target interest rate by a quarter of a percentage point on Wednesday, setting aside the rapid hikes used last ...

[number of job openings](/markets/us/us-job-openings-unexpectedly-increase-december-2023-02-01/) in December rising back above 11 million to a level nearly double the number of people unemployed. Policymakers are encouraged by recent developments, but appear to remain united in the need to 'keep at it' with respect to reducing inflation pressures." central bank's benchmark overnight interest rate in the 4.50%-4.75% range, the highest since November 2007, when the economy was on the eve of what would prove to be a long and deep recession. Caught flat-footed last year as inflation accelerated and threatened to prove far more persistent than anticipated, the Fed approved the fastest interest rate hikes since the 1980s. data "pointed to continued growth, moderating inflation, and a slower pace of Fed rate hikes." Fed Chair Jerome Powell is scheduled to hold a news conference half an hour later to elaborate on the decision. New data last week showed a key inflation measure slowed faster than expected in December, continuing a six-month downward trend. Traders of futures that settle to the Fed's policy rate see the path somewhat differently, with the benchmark rate peaking in the 4.75%-5.00% range, and the central bank cutting that rate to around 4.4% by December. we also anticipate a hawkish resolve ... The rate-setting Federal Open Market Committee is due to release its policy statement at 2 p.m. As of December, policymakers' median forecast was for the Fed's target interest rate to peak in a range between 5.00% and 5.25%, an outlook that would imply a pause in the policy tightening after two more quarter-percentage-point increases. Growth in

Federal Reserve officials are expected to raise interest rates by a quarter point on Wednesday, the latest step in their battle against rapid inflation.

Harker [has said he expects](https://www.nytimes.com/2023/01/12/business/inflation-gas-discounts.html) the Fed to raise rates “a few more times” this year. Markets will be on the lookout for any hint at whether the Fed is likely to stick with its expectations and raise rates a few more times before it hits pause. The Fed chair is sure to face questions about it. Four of the central bank’s 12 regional presidents rotate in and out of voting seats each year, while New York’s president and the Fed’s seven governors in Washington hold a constant vote. That rate increase would be the tiniest move the central bank has made since March; Fed officials lifted borrowing costs by half a point in December, and before that they nudged them up by three-quarters of a percentage point at Pulling out the thesaurus is tricky business for the Fed, though: There’s a risk that Wall Street would interpret any shift in the wording to mean that central bankers think they have basically done enough to temper the economy. [ran at 4.4 percent](https://fred.stlouisfed.org/graph/?g=ZjXN) over the past year, after stripping out volatile food and fuel prices. That is why some economists think officials could drop or tweak the phrase this week. Powell, the Fed chair, will hold a news conference. Federal Reserve officials are expected to raise interest rates by a quarter point on Wednesday, the latest step in their battle against rapid inflation. Powell’s remarks should give investors and economists a chance to assess whether officials have changed their thinking since they last met in December. The Fed will release its January policy statement at 2 p.m.

Federal Reserve Board Chairman Jerome Powell holds a news conference following the announcement that the Federal Reserve raised interest rates by half a ...

The question is when the Fed gets to the end. "We don't live in an era anymore where the market waits, where the market stops and takes a breather to find out where the end is. Likewise, the [Cleveland Fed's Inflation Nowcast](https://www.clevelandfed.org/indicators-and-data/inflation-nowcasting) is indicating that headline CPI rose 0.6% in January and 6.4% from a year ago, while PCE inflation was up 0.5% and 5%, respectively. "If the Fed is considering not hiking in March, Powell will not explicitly telegraph such a thing," said Tom Graff, head of investments at Facet Wealth. The December CPI showed a monthly decline of 0.1%, providing hope that inflation is headed in the right direction. ET to address the media and likely try to dampen speculation that the FOMC has made up its mind about when a policy pause will come. There is some speculation that the statement could get adjusted a bit more to add uncertainty about how much more aggressive the Fed wants to get. "We see incredibly limited scope for the Fed to plausibly justify keeping this cycle going deeper into the year with what will already be a very restrictive policy stance in the face of what are likely mounting economic challenges to the backdrop." "They'll likely do another 25 at the March meeting and that's when the cycle comes to end," Tom Porcelli, chief U.S. The funds rate is what banks use as a benchmark for overnight borrowing, but it flows through to many consumer credit instruments like car loans, mortgages and credit cards. What markets are unsure of is where the Fed goes from here. [have been explicit in stating](https://www.cnbc.com/2023/01/20/fed-governor-waller-backs-quarter-point-interest-rate-hike-at-next-meeting.html) that, at the very least, they can start approving smaller moves than the four consecutive 0.75 percentage point increases in 2022.