The Federal Reserve took its foot slightly off the break earliest this year.
At a meeting held in late January, Fed chair Jerome Powell announced a rate hike of 0.25%. The figure, down from the previous half-percentage-point hike, signaled a more positive outlook on stubbornly high inflation, but is not expected to be the last increase this year. The Fed will meet again this week to announce what is expected to be another increase in rates.
The Fed hikes rates to raise the cost of borrowing for businesses and shoppers. The goal is to curb borrowing, cool off an overheated economy and fend off inflation spikes. The trick is to moderate inflation without sending the economy into a recession — what economists call a ‘soft landing.’
That goal is under increased scrutiny as the US and global banking systems are roiling from the collapses of Silicon Valley Bank and Signature Bank earlier this month.
Looking ahead, this is when the Federal Reserve plans to meet for the rest of 2023.
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Federal Reserve 2023 Meeting Schedule
March 21-22
May 2-3
June 13-14
July 25-26
September 19-20
Oct/Nov 31-1
December 12-13
When is the next Fed meeting?
The next Federal Reserve meeting will be held from March 21 to the 22.
Is a 2023 recession coming? Job growth likely to slow sharply, companies brace for impact
What is inflation?:Understanding why prices rise, what causes it and who it hurts most.
How much did the Fed raise interest rates?
At the Fed’s last meeting, which was held between January 31 and February 1, interest rates were bumped up 0.25 percentage points. Slightly smaller in size than previous hikes, the policy is meant to wrestle down soaring inflation.
How bad will a recession be?Some economists say it could be worse than we expect and here’s why.
Is inflation going down from the Fed’s interest rate hikes?
Some evidence suggests that inflation could be on the decline.
U.S. monthly job growth has, for example, fallen from 517,000 in January to 311,000 in February while private-sector wages and salaries grew 4.6% annually. That rate is historically high but still lower than the previous quarter’s 5.7% annual wage growth.
Perhaps the most widely watched inflation gauge is the consumer price index. It showed that overall prices in the month of November were up 7.1% from the previous year, but down from a four-decade high of 9.1% in June.
Economists also indicate, even without big Fed rate increases, that inflation is expected to slow as supply-chain bottlenecks ease, commodity prices fall, a strong dollar lowers import costs and retailers offer discounts to unload swollen inventories.
How many times did the Fed raise interest rates in 2022?
Interest rates were hiked seven times last year. Rates had been hovering near zero during the pandemic’s economic standstill, and then were raised by 0.25 percentage point starting in March.
Another increase came in May, this time by 0.50 percentage point, followed by 0.75 percentage point hikes for four consecutive meetings. The Fed ended the year with a 0.50 percentage point hike.
Contributing: Paul Davidson, Elisabeth Buchwald
This article originally appeared on USA TODAY: Fed meeting schedule 2023: A look at this year’s calendar