Economists think Fed will keep raising rates despite bank turmoil

Majority of economists polled by FT expect Fed to continue raising benchmark policy rate above 5.5% for the rest of the year to fight stubbornly high inflation despite bank turmoil.

March 20, 2023 . 12:56 PM

1 min read

Majority of economists polled by FT expect Fed to continue raising benchmark policy rate above 5.5% for the rest of the year.
Economists believe Fed still needs to fight stubbornly high inflation despite bank turmoil.
Nearly 70% of respondents do not expect Fed to deliver cuts before 2024.
Traders have scaled back expectations of tightening amid worries about financial instability.
Economists have a more hawkish stance than current expectations reflected in fed funds futures markets.