Fed pushes rates higher, leaves open the door for more increases
The Federal Reserve has raised its overnight lending rate to 5.25%-5.5%, the highest in 22 years. The committee may raise rates again in upcoming meetings as monetary policy is currently restrictive. 12 of 19 committee members expect federal funds rate to rise above 5.50% in 2023. Recent inflation reports show price growth slowing, but energy and commodity prices suggest potential rate hikes. Consider alternative investments like money market funds and CDs as rates rise.