The U.S. Federal Reserve Board (Fed) previously vowed not to raise benchmark interest rates prematurely, but a survey released today shows that most U.S. economists believe that the Fed may be forced to raise rates as soon as next year.
The National Association for Business Economics (NABE) survey shows that 46% of respondents believe the Federal Open Market Committee (FOMC), which sets policy for the Federal Reserve, will raise interest rates in The survey showed that 46% of respondents believe that the Federal Open Market Committee (FOMC) will raise interest rates in 2022 and 28% believe that interest rates will be raised in 2023.
The Federal Open Market Committee held a 2-day meeting last week, although most officials said after the meeting that interest rates will not rise until at least 2023, only 12% of respondents believe that the Federal Reserve will change interest rates after 2023.
This survey is the latest sign that Inflation is expected to rise. Congress has introduced three major bailouts in the past year to keep the world’s largest economy afloat while the Epidemic disrupts business.
President Joe Biden signed the $1.9 trillion American Rescue Plan earlier this month, the third major relief measure passed during the epidemic, which some economists believe could overstimulate the economy and lead to higher prices. Therefore, they are opposed to it.
The Federal Reserve Board lowered the benchmark interest rate to near zero a year ago, and a few months later said it would maintain near-zero interest rates until inflation remained at 2.0%. Federal Reserve Chairman Jerome Powell (Jerome Powell) this week at the Federal Open Market Committee to reiterate this commitment.
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