The countdown has begun for the announcement of the Fed’s interest rate decision. Fed Chairman Jerome Powell also stated that he thinks March is appropriate for a rate hike. Announcing that it plans to increase the interest rate with the effect of rising inflation, the interest rate decision of the FED is expected by the markets.
Stating that Russia’s invasion of Ukraine created high uncertainty on the US economy, Powell said, “FED is watching the situation closely. After the start of the rate hike process, we will start to reduce the balance sheet. The deterioration in supply routes has grown even more and will last longer than expected.” had made a statement.
WHEN IS THE FED MEETING?
The Fed Meeting of the US Federal Reserve will be held on March 15-16. The Fed’s interest rate decision will be announced on March 16 at 21:00. The third meeting will be held on May 3-4.
WHAT HAPPENS TO FED INTEREST DECISION?
The Fed is expected to increase the overnight benchmark rate by a quarter point at its monetary policy meeting. Consumer inflation in the US rose to 7.5 percent in January, the highest in 40 years. The Fed’s federal funding rate is in the range of 0-0.25%.
WHAT HAPPENS IF THE FED RISES?
A possible interest rate hike by the FED will deeply affect world markets, especially emerging markets. It is thought that the FED’s rate hike may bring the value of the dollar to rise and the growth to slow down. Therefore, the Fed’s decisions are followed with concern by the markets.