Federal Reserve Chairman Powell said in a closed-door meeting with Republican lawmakers on Wednesday that he expects to raise interest rates again this year. Associated Press
Fed Chairman Jerome Powell, in a private meeting with Republican lawmakers on Wednesday (29th), when asked how much more interest rates will be raised this year, referred to the latest dot plot, which shows policymakers expect Another rate hike.
A spokeswoman for the conservative Republican Study Committee said Power's trip to meet with members of the Missy was arranged before the collapse of the Silicon Valley bank.
Fed policymakers released their latest rate projections, the so-called "dot plot," after a two-day policy meeting in Washington last week. Powell was in effect reiterating the position the central bank had stated at the time.
"The latest thing they're acknowledging is that they expect one more rate hike this year," Representative Kevin Hern, who represents Oklahoma and chairs the Republican Studies Committee, told reporters after a meeting with Powell.
Despite the recent turmoil in the banking system, Fed officials raised interest rates by a quarter since their last meeting, continuing efforts to curb inflation. The move raised the policy rate to a target range of 4.75% to 5% from near zero in March 2022, and a dot plot released at the same time showed that the median forecast of 18 officials for the policy rate was to reach 5.1% by the end of this year , meaning another 25 basis points of interest rate hikes.
Powell also told lawmakers it was up to Congress to decide whether to raise the cap on federal deposit insurance, but "he thought it was a good topic for discussion," Hern said. It’s really important to make sure they think their money is safe. One way to make sure that’s going to be to increase the FDIC deposit insurance limit.”
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