In the most recent Federal Open Market Committee meeting, Chair Jerome Powell indicated he views the U.S. economy to be in a strong position, with consistent job growth and wage increases; however, he sees inflationary pressures to be an ongoing concern for American families – the rise in prices, which are evident in almost all goods and services, are warranting the Fed to take aggressive action in moving towards tightening the monetary policy and preventing an “overheating” situation of the economy. During the meeting, the Fed adopted a quarter percent increase in Fed fund rates – the first rate hike since 2018.
In this article, we’ll take a closer look at the American economic forecast and how Fed’s interest rate hikes will likely impact fixed income markets.
municipalbonds.com
by Jayden Sangha
Mar 30, 2022