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Will the Federal Reserve continue to hike interest rates as the banking industry walks on eggshells after the implosion of Silicon Valley Bank and Signature Bank earlier this month?
The anticipation is killing Fed watchers and investors alike.
Today we’ll finally get an answer.
Before the recent bank failures, some economists and policymakers had been calling on the Fed to stop hiking interest rates over fears it could cause a recession. Even with signs that the U.S. economy was cooling off and that soaring prices were slowing, Fed officials, including Chair Jerome Powell, signaled the central bank would likely raise interest rates by as much as a 50 basis point at its March meeting to continue curbing stubborn inflation.
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But after the recent bank failures, economists at Goldman Sachs said they didn’t expect the Fed to raise rates in March over concerns that it would put undue stress on banks.
However, if the Fed doesn’t change rates, it could risk losing the fight against inflation, which showed minor improvements from January to February. Inflation remains more than three times the Fed’s 2% target.
Follow along for live updates leading up to the Fed’s crucial decision today:
When will the Fed announce a rate hike?
If the Fed raises interest rates it will announce it at 2 p.m. ET today.
When is Jerome Powell speaking?
Powell will hold a press conference at 2:30 p.m. ET.
When is the next Fed meeting?
The Fed’s next meeting is May 2-3. Here’s a schedule of the remaining meetings for the year:
- June 13-14
- July 25-26
- September 19-20
- Oct/Nov 31-1
- December 12-13
Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY. You can follow her on Twitter @BuchElisabeth and sign up for our Daily Money newsletter here
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