WASHINGTON–The Federal Reserve’s Open Market Committee will kick off its two-day meeting today at which it is widely expected to raise rates before it adjourns on Wednesday.
The meeting is being held at the same time more global analysts are raising concerns the world’s economy is going to be hobbled as central banks raise rates. In addition to the FOMC meeting in the U.S., central banks in England, Norway, Sweden and Switzerland are also meeting this week and are likely to raise rates, as well.
As CUToday.info has reported, credit union economists are largely in step with other forecasters who are predicting a 75-basis-point increase, bringing the benchmark interest rate to between 3% and 3.25%, up from near zero when 2022 got underway. Some have called for a full point increase to slow inflation.
The central banks have been pushing rates higher as part of an effort to mute rising inflation, but so far the increases have not had their desired effect. The government reported consumer prices rose 8.3% in the past year, through the end of August.
As CUToday.info has also reported, the Fed’s actions are having the most effect on the real estate and mortgage markets.The average rate on the 30-year mortgage rose above 6% last week for the first time since 2008.