As the Fed plans to ‘raise and hold,’ new projections may show the cost

WASHINGTON – U.S. Federal Reserve officials have signaled plans for a half-point interest rate hike at their meeting this month, and while that would be a step down from recent rate increases, new projections issued then could show a policy rate headed toward levels last seen on the eve of the 2007 financial crisis.

Moreover, in an outlook that could lean against market expectations for rate cuts by the end of next year, the 19 U.S. central bankers’ new forecasts may well show the federal funds rate remaining at that elevated level at least through 2023.

The updated outlooks will be a fresh chance for Fed officials to show how their “raise and hold” strategy is expected to play out…

Keep on reading: As the Fed plans to ‘raise and hold,’ new projections may show the cost