The Fed Predicts Interest Rate Through 2023

The Fed Predicts Interest Rate Through 2023

( – With long-term economic hardship on the horizon, economists and lawmakers have been concerned about what will happen with inflation, interest rates, and debt. This week, the Federal Reserve released a post-meeting statement, giving a look at the economic forecast for the next few years.

On September 16, the Fed revealed it’ll keep interest rates near zero through 2023 or beyond. Jerome Powell, Chair of the Federal Reserve, believes this move will help the economy bounce back from the pandemic by encouraging more borrowing and spending. However, he did state during the press conferences that “more fiscal support is likely to be needed.”

Tim Shaler, the Chief Economist at iTrust Capital, shares his thoughts on what this means for the housing market:

Looking ahead, the Fed’s projection expects unemployment to drop to 7.6% by the end of 2020 and to 4% in 2023. Looking ahead as we move out of the COVID-19 pandemic, we must push forward with fiscal responsibility to beat inflation and unemployment and take hold of our future.

~Here’s to Your Prosperity!

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