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Author Topic: Fed action in 2023  (Read 54 times)

MeyanieBea

  • Guest
on: December 23, 2023, 06:49:21 AM
The FED has started raising interest rates, with US inflation surpassing previous records. Although the US economy started to do better, the Fed did not cut interest rates. As of December 2022, interest rates are around 4.50%. If the US economy falls into a deeper recession, the Fed will be in a difficult position, causing the US dollar to depreciate in the foreign exchange market.

It is expected that if inflation falls in 2023, the Fed is likely to stop raising interest rates as it has been doing for the past few months. This will be the Fed's fulcrum, which in turn could strengthen the US dollar. However, this will only be possible if the current inflation rate of 7.1% falls below the target rate of 2%, which is a bleak possibility.



 

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