11 July 2023
The Federal Reserve is poised to continue raising interest rates to combat stubbornly high inflation, but the end of its tightening cycle is drawing near, according to U.S. central bank officials. The Fed has already implemented five rate hikes since March 2022, aiming to curb the highest inflation in four decades. While more rate increases are expected this year, policymakers are cautious and relying on data to guide their decisions. The Fed’s goal is to sustainably bring inflation back to its target of 2%. The next rate hike is anticipated at the upcoming meeting, with the timing of subsequent increases yet to be determined. Fed Chair Jerome Powell remains open to consecutive rate hikes if necessary to address persistently high inflation.