Fed's interest rate stance in focus as economic projections loom
Investing.com Federal Reserve officials are expected to maintain interest rates steady at their meeting on Wednesday, September 20, 2023. This comes as the central bank aims to assess if the current borrowing costs are adequate to moderate the economy and manage inflation. However, investors' attention is likely to shift towards the Fed's comments on future financial policies.
Previously, the Federal Reserve had raised interest rates to a range of 5.25 to 5.5 percent, marking a 22-year high. This was aimed at curbing economic demand by making borrowing more costly for housing or business expansion, thereby limiting companies from increasing prices without risking customer loss, hence slowing price hikes.
In their last economic forecast in June, officials had projected a potential rate increase by the end of 2023. Despite signs of easing inflation, this prospect has been maintained throughout summer. However, key policymakers have shown less inclination towards another rate hike in recent weeks.
