On Wednesday, the Federal Reserve Open Market Committee is widely expected to increase interest rates again. While most analysts, including Pro Farmer’s Brian Grete and Jim Wiesemeyer, feel confident rates will go up tomorrow, one question remains: How many more times will the increase this year?
“I’d be shocked if it isn't a quarter point rise,” Grete told AgriTalk host Chip Flory on Monday. “I think the bigger focal point will be and should be on Chairman Powell’s comments afterwards.”
Farmers should know that Chairman Powell’s comments during his quarterly press conference will be the best indicator of the steps the Federal Reserve will make moving forward, Grete said.
The market expectation is another rate hike in September and possibly one in December.
According to Wiesemeyer, the important points to listen for include how many times the committee will increase rates, by how much and what they say about inflation.
“All that will determine, you know, the degree of interest rate hikes ahead,” he said.