It seems that Jerome Powell’s work isn’t yet done, with economists expecting the Fed to stay true to its word and raise rates one more time in order to reach the “point of pain”.
Top economists are predicting the Fed will hike up rates by another quarter percentage point in order to get inflation under control this spring—as long as the banking crisis doesn’t bleed into a full-blown contagion—and then stop the upwards cycle.
Rates are already at their highest in 15 years, having steadily increased from near zero a year ago to 5% after a quarter point hike was announced on March 22. Powell’s decision to make that hike has divided opinion, with some calling it “unnecessary” while others maintained it was entirely predictable.
Source : Economists predict one more rate hike from the Fed before easing pressure in 2024