Fed Gives Clear Signal About Interest Rates

Daniel Thornton January 31st, 2022

The Federal Reserve met in mid-January, and clarified its position on monetary policy, providing the clearest hint yet about short-term interest rates. The fed hinted that the first interest rate hit could come as soon as March.1

The markets were on edge anticipating the Fed update. But by the end of the meeting, the market relinquished its gains as traders across the globe worked to assess what the upcoming rate hikes will mean for the year ahead.1

While Powell feels confident that the ongoing supply chain issues will soon see some relief, it remains to be seen if the proposed rate hikes will be enough to combat higher-than-expected inflation. Powell stated that they recognize that inflation is causing issues for many Americans, but said the Federal Open Market Committee (FOMC) is committed to stabilizing prices.1

If you’re concerned about the direction of interest rates, don’t hesitate to reach out.

1CNBC.com, January 26, 2022

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Investment advisory services are offered through Concord Wealth Partners, an SEC Registered Investment Advisor.

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