{"id":19679,"date":"2023-04-10T14:23:51","date_gmt":"2023-04-10T14:23:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/economists-expect-the-fed-to-reveal-another-25bps-rate-hike-before-pausing-for-the-rest-of-2023-economics-bitcoin-news\/"},"modified":"2023-04-10T14:23:51","modified_gmt":"2023-04-10T14:23:51","slug":"economists-expect-the-fed-to-reveal-another-25bps-rate-hike-before-pausing-for-the-rest-of-2023-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/economists-expect-the-fed-to-reveal-another-25bps-rate-hike-before-pausing-for-the-rest-of-2023-economics-bitcoin-news\/","title":{"rendered":"Economists Expect the Fed to Reveal Another 25bps Rate Hike Before Pausing for the Rest of 2023 \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After the March rate hike by the Federal Reserve, economists believe that the recent move by Saudi Arabia and several members of the Organization of the Petroleum Exporting Countries (OPEC) to cut oil production could complicate the central bank\u2019s mission. Additionally, the majority of the market is pricing in another 0.25% increase for the May 3 meeting of the Federal Open Market Committee (FOMC), and several analysts suspect it may be the last hike for quite some time.<\/strong><\/p>\n

Economists Attempt to Predict Fed\u2019s Next Decision \u2014 \u2018Peak Rates Are in Sight\u2019<\/h2>\n

This week, market investors are focused on several factors, including the Consumer Price Index (CPI) report and earnings reports from some of the largest banks in the United States. However, one of the biggest factors investors are eyeing will take place in 23 days when the Federal Open Market Committee (FOMC) meets to potentially raise the federal funds rate. According to statistics from CME Group\u2019s Fedwatch tool<\/a>, there is a 66% chance the Fed will raise the rate by 25 basis points (bps). Conversely, there is a 34% chance the Fed won\u2019t raise the rate in May, and some believe that after a 25 bps rate hike, May will be the last increase for 2023.<\/p>\n

Although the Federal Open Market Committee (FOMC) will be monitoring this week\u2019s CPI report, senior economist Sarah House at Wells Fargo described how the recent decision<\/a> by Saudi Arabia and OPEC to cut oil production could affect the Fed\u2019s future policy. \u201cThe Fed sees OPEC decisions as mostly geopolitical, but they can impact production of goods and the transportation of other items, so those higher oil prices can bleed into that core component, which the Fed does tend to focus on a little bit more in terms of setting policy,\u201d House explained<\/a> to CNN reporter Bryan Mena.<\/p>\n

Economists surveyed<\/a> by Bloomberg Economics expect the federal funds rate to reach 5.25% at the end of 2023. Economist Anna Wong stated in the forecast, \u201cWe expect the Fed will hike by another 25 basis points at its May meeting, when the upper bound of fed funds rates reaches 5.25%. With the recent production cuts by OPEC+ and the still-tight U.S. labor market, inflation will likely remain in the vicinity of 4% in 2023, and keep the Fed from rate cuts, as markets currently foresee.\u201d Wong added:<\/p>\n

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We see the Fed holding rates at the peak level for the duration of this year, even as a mild recession is likely to develop in late-2023.<\/p>\n<\/blockquote>\n

Portfolio manager Michele Morra at Moneyfarm believes<\/a> that investors have shifted their focus away from inflation and are now fixated on a recession. With inflation slowing down and \u201ceven if taking into account a more dovish monetary policy, the main focus is recession,\u201d Morra opined. Bloomberg economist Tom Orlik believes that the interest rate will soon peak for various reasons.<\/p>\n

Economist Tom Orlik told Bloomberg Economics, \u201cSince the start of the year, central banks have been buffeted by rival forces. Faster China reopening, Europe dodging a downturn, and tight U.S. labor markets all argue for higher rates. The collapse of Silicon Valley Bank and Credit Suisse pull in the opposite direction. So far, with limited signs of a broader banking crisis, it\u2019s the arguments for tightening that are winning the day. Peak rates are in sight, but we\u2019re not quite there yet,\u201d the economist added.<\/p>\n

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Anna Wong<\/a>, Banking Crisis<\/a>, Benchmark Rate<\/a>, Bloomberg Economics<\/a>, Bryan Mena<\/a>, Central Bank<\/a>, China reopening<\/a>, CME Group<\/a>, CNN<\/a>, credit suisse<\/a>, Decision Making<\/a>, economics<\/a>, Europe<\/a>, Fed<\/a>, Federal Funds Rate<\/a>, Federal Reserve<\/a>, Fedwatch tool<\/a>, Focus<\/a>, Forecasts<\/a>, inflation<\/a>, interest rate<\/a>, Investors<\/a>, market<\/a>, May meeting<\/a>, Michele Morra<\/a>, Monetary Policy<\/a>, Moneyfarm<\/a>, oil production<\/a>, opec<\/a>, peak rates<\/a>, portfolio manager<\/a>, Rate Hike<\/a>, Recession<\/a>, Saudi Arabia<\/a>, senior economist<\/a>, Silicon Valley Bank<\/a>, Statistics<\/a>, Tom Orlik<\/a>, U.S. labor markets<\/a>, Wells Fargo<\/a><\/div>\n<\/div>\n

What do you think about the economists\u2019 predictions? What do you think the impact of the recent OPEC+ oil production cuts will be on the Fed\u2019s future policy decisions, and how will it affect the economy and financial markets? Share your thoughts about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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