Analytical Reviews

Get the latest economic news from ForexMart, including updates on the financial market, central bank policy announcements, financial indicators, and other relevant news which can impact the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The US Federal Reserve can raise the interest rate more than four times in 2022


January, 27 2022
watermark Economic news

The results of the meeting of the US Federal Reserve System forced market participants to slightly change their expectations for the further policy of the regulator. Now the markets are almost certain that the rate will be raised more than four times this year.


Since the Fed shared the «hawkish» minutes of the December meeting in early January, investors have been actively speculating about how aggressive the tightening of monetary policy will be in 2022. Most were confident that the regulator would raise the rate four times starting in March. However, now many expect five or six increases – and the rate at the level of 1.25-1.5% per annum by the end of the year.


Such assumptions were caused by comments by Fed Chairman Jerome Powell, who said that the central bank sees significant progress in the labor market and inflation is well above the target 2%, so «the economy no longer needs a high level of monetary policy support.» At the same time, the Chairman noted that the exact timing of the rate increase has not yet been adopted and the discussion of this issue will be raised at subsequent meetings. 


However, there are also those who believe that the rate will be raised only four times, but at the same time more sharply. For example, Nomura Holdings expects that the Fed in March may raise the interest rate by 50 basis points at once, and then from May to July it will raise the rate by 25 basis points.


コメントする

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.