Fed holds rates; NAFCU doesn’t expect rate hike prior to 2024

The Federal Open Market Committee (FOMC) Wednesday maintained the federal funds target rate near its current range of 0 to 0.25 percent. The committee noted it will run the economy above 2 percent inflation, stating they “aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer‑term inflation expectations remain well anchored at 2 percent.”

During his post-meeting press conference, Fed Chairman Jerome Powell stressed that the committee is not likely to taper or otherwise alter the mix of asset purchases for the foreseeable future.

“The FOMC’s March statement was nearly unchanged from the prior iteration and contained no indication that tighter policy is on the committee’s radar,” said NAFCU Chief Economist and Vice President of Research Curt Long in a new Macro Data Flash report. “Despite a markedly better forecast, highlighted by 6.5 percent real GDP growth this year, the majority of FOMC participants still do not expect liftoff prior to 2024.

 

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