Fed to Raise Rates by 25bps Before Halting for 2023 - Economists Predict

Economists predict that the Federal Reserve will raise the federal funds rate by 25 basis points (bps) at its May meeting, with a 66% chance of a rate hike. However, the recent decision by Saudi Arabia and OPEC to cut oil production could complicate the central bank's mission. Economists surveyed by Bloomberg Economics expect the federal funds rate to reach 5.25% at the end of 2023, with the Fed holding rates at the peak level for the duration of this year, even as a mild recession is likely to develop in late-2023.