Moody’s Analytics Chief Economist Mark Zandi stated that he thinks that the US Federal Reserve (Fed) can increase interest rates by 25 basis points at the meeting to be held on July 26. “The markets seem to have priced in the possibility of a 25 basis point rate hike by the Fed,” said Zandi, adding that there will be “no need” for the Fed to raise rates further after the July meeting.
Moody’s Analytics Chief Economist Mark Zandi, in his evaluation of the ongoing inflation problem in the USA after the epidemic, stated that the inflation in the country has been high for the last few years and still remains high. “I am hopeful that inflation will come down moderately,” said Zandi, adding that they expect inflation to be brought under control in these months next year.
Zandi underlined that the Fed will not change his mind too much in his prediction about the US Federal Reserve’s (Fed) interest rate decision. Emphasizing that Powell clearly signaled in the last meeting that the Fed could raise interest rates by another 25 basis points, Zandi stated that he thinks that the Fed may increase interest rates by 25 basis points at the meeting to be held on July 26.
On the other hand, Zandi said, “The markets seem to have priced in the possibility of a 25 basis point rate hike by the Fed,” and explained that there will be “no need” for the Fed to raise rates further after the July meeting.