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.
1. CNBC.com, January 26, 2022