CNN reported that the US Federal Reserve is set to raise interest rates by 50 basis points at its meeting next Wednesday.
This week is one of the biggest macro data releases since the beginning of the year, as the four major central banks hold their final policy meetings for the year, as well as US consumer inflation data that could be useful in setting the US outlook. interest rates and dollar. The US Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank will decide on interest rates.
Read more: Former US Secretary of State: Fed will need to raise interest rates more than markets expect
In the latest minutes of a meeting of the Federal Reserve (the US central bank) in early November, it appeared that an “overwhelming majority” of monetary policymakers agreed that it “probably would soon be appropriate” to slow down the rate of interest rate hikes. rates, with a wide range of interest rates Debate over the implications of the Bank’s rapid monetary tightening Fed minutes show they are poised to move to a 50 basis point rate hike in December.
“The vast majority of participants believed that a slowdown in growth was likely to be appropriate in the near future,” according to the minutes of their November 1-2 meeting, released shortly before the end of November in Washington.
And in a previous interview; Zina Rizk, executive director of fixed income management at Arqaam Capital, told Al-Arabiya that the US Federal Reserve will begin to ease the pace of interest rate hikes starting in December, while maintaining its target interest rates at 4.5% and 4.75. %.
Interest rate futures indicate that traders expect the Fed to raise interest rates to around 5% by May 2023, from the current range of 3.75% to 4%. Economists are looking for a 50 basis point rise at the December 13-14 policy meeting, when Fed officials are also due to release new base rate forecasts.
Average hourly wages rose 0.6% in November, the biggest increase since January, and up 5.1% year-over-year. Wages for production workers and non-supervisory workers rose 0.7% month-on-month, the highest in nearly a year.
Since the last Fed meeting, Fed officials told officials during the meeting that their recession risk estimate had risen to around 50-50. It was the first warning of its kind since the central bank began raising interest rates in March.
At the latest meeting, officials raised the benchmark interest rate by 75 basis points for the fourth consecutive time, extending the most aggressive tightening campaign since the 1980s to fight inflation that hit a 40-year high.
Investors expect the Fed to raise interest rates by 50 basis points when it meets Dec. 13-14 and see rates peak at 5% by mid-2023.
