FED interest rate was hiked steeply in the past 15 months to reduce inflation. During Jan-2022 FED interest rate was 0.25% and it was gradually increased and in March-2023 it was 5%.
During Jan-2022, FED interest rate was 0.25%.
During Mar-2022 FED meeting, FED interest rate was made 0.50%.
During May-2022 FED meeting, FED interest rate was made 1.00%.
During June-2022 FED meeting, FED interest rate was made 1.75%.
During July-2022 FED meeting, FED interest rate was made 2.50%.
During Sep-2022 FED meeting, FED interest rate was made 3.25%.
During Nov-2022 FED meeting, FED interest rate was made 4.00%.
During Feb-2023 FED meeting, FED interest rate was made 4.75%.
During Mar-2023 FED meeting, FED interest rate was made 5.00%.
Inflation in February-2023 in US reduced to 6% even though it is relatively higher when compared with FED inflation target of 2%. In Jun-2022, USA inflation was 9.1% when compared YoY basis.
Still some more interest rate hikes will be there from FED.
But actually better to wait and see, the situation for next 3 months without incresing FED interest rate hikes further.
US inflation is inversely proportional to FED interest rate hikes. The more you raise FED interest rate hikes, the less will be the inflation in US. In next 3 to 4 months, the lines will intersect with each other.
But at the same time, if FED increases interest rates beyond a point, US companies will be in trouble and their spending capacity will reduce. Experimental projects will go on hold. This reduces US signficance in attracting global talent.
So FED will always needs to balance two things a. US inflation and b. US economy should not be severely impacted.
Let us see how FED interest rate hikes going to be in future?
Compare FED inflation and FED interest rates by Month
|Data of Month||Inflation||FED Interest Rate|