What to Expect From Fed Decision
(NEWSnet) — The Federal Reserve will make its decision on interest rates on Wednesday.
It’s widely expected that the central bank will raise rates by a quarter point. The general consensus amongst economists is that the Fed will continue its aggressive campaign to slow inflation by driving up rates.
While it's expected that the central bank will stay the course, recent developments across the broader economy threw a wrench into the mix.
The Fed announced on Sunday that it, alongside other central banks, would ramp up what is called swap operations. Those ensure a more consistent global flow of the U.S. dollar. The plan will be in place through April.
The move comes on the heels of increasing turmoil in the banking sector both stateside and abroad. The central bank even expanded its emergency lending program to help banks get through this tough moment.
The Fed and other central banks are in a precarious position as it is. The COVID-19 pandemic caused an unprecedented and unconventional economic disaster that made it difficult for any central bank or government to tamper down.
Inflation started to rise as the economy reopened demand outpaced supply in the early days of the recovery. That caused global supply chain challenges that caused long-term ripple effects around the globe.
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