Information from the latest Fed meeting in November 2023
• The Fed held its benchmark interest rate at 5.25-5.50%.
• The US economy remains strong and the labor market remains tight.
• Inflation remains high and poses risks to the economic outlook.
• The Fed expects inflation to remain high in the coming months, before starting to decline later this year.
• The Fed estimates that the US economy will grow at a slower pace in 2023.
Positively, this decision will help to reduce the risk of a global economic recession.
Negatively, this decision could increase inflation risks outside the United States. This is because the Fed is no longer taking steps to tighten its monetary policy.
The Fed has indicated that there will be one more interest rate increase in 2023. This interest rate increase is expected to be carried out at the next December meeting.
After that, the Fed is likely to start reducing the rate of increase in interest rates in 2024. This is to avoid an economic recession.
