The Federal Reserve will hike interest rates just one more time in 2023 before the central bank ends its inflation battle, according to its median forecast released Wednesday.
The Fed kept the “terminal rate,” or the rate at which its benchmark fed funds rate will peak, unchanged from the last estimate in December at 5.1%, equivalent to a target range of 5%-5.25%. The central bank on Wednesday took the benchmark rate a quarter percentage point higher to a range between 4.75%-5%.
The so-called dot plot, which the Fed uses to signal its outlook for the path of interest rates, indicates that a majority of officials, 10 out of 18 members, expect only one more rate hike by the end of this year. Seven Fed officials see rates going higher than the 5.1% terminal rate.