Money in USA

United States Money | Economic News & Forecasts

USA - Money

Fed hikes by 75 basis points in November

At its meeting on 1–2 November, the Federal Open Market Committee (FOMC) decided to raise the target range for the federal funds rate by 75 basis points to 3.75–4.00%—the fourth successive 75 basis-point hike.

The decision to hike was aimed at containing inflation, which has been running well over the Central Bank’s 2.0% target in recent months due to external price pressures and the tight domestic labor market.

Looking forward, the Fed reiterated that “ongoing increases in the target range will be appropriate”. While the lower-than-expected October inflation data led to market hopes that the Fed’s tightening cycle could soon peak, our panelists continue to see notable rate hikes ahead, with the upper bound of the federal funds target rate expected to peak close to 5% in the middle of next year. That said, there is a notable discrepancy in panelists’ views.

Giving their take on the outlook, the EIU said:

“The latest CPI data fit with our view that the Fed will slow the pace of rate rises in the coming months, bringing its policy rate to a peak target range of 4.5-4.75% in February 2023, from 3.75-4% currently.”

Analysts at Nomura are more hawkish:

“Despite the sharp deceleration in core CPI inflation, we think that policymakers will likely discount some of the weakness […] Altogether, we maintain our above-consensus terminal rate forecast of 5.50-5.75%, which we expect in May 2023.”

The next FOMC meeting is scheduled for 13–14 December.

United States - Money Data

2015   2016   2017   2018   2019  
Money (annual variation in %)5.8  6.8  5.7  3.9  5.1  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

United States Money Chart


USA Money

United States Facts

Value Change Date
Bond Yield1.92-0.43 %Dec 31
Exchange Rate1.120.65 %Dec 31

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form