Fed: Key interest rate to peak at 5.00% in Q1 2023 – Commerzbank Fed InterestRate Banks UnitedStates
stands at 3.25%. The Fed is expected to raise it to 5.0% by the end of the first quarter, according to economists at Commerzbank.“We expect another big 75 bps rate hike at the meeting in early November. By the end of the year, the key interest rate should stand at 4.50% and peak at 5.00% in the first quarter of 2023. We have thus raised our forecasts for the fed funds terminal rate.”
“Despite the recession expected in the US in the first half of 2023, the Fed is likely to be reluctant to cut key rates again quickly due to stubborn inflation. We do not expect this until towards the end of 2023.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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