Will the Fed Rate Hikes End in May? Here’s What 5 Experts Say
Speculation about the Federal Reserve’s ongoing plans to raise interest rates has been circulating for months, with many people wondering whether or not the Fed will end their rate hikes in May. As May approaches, a number of experts have been weighing in on the issue, offering their predictions and analysis of the situation.
The Current State of the Federal Reserve’s Interest Rate Hike Plan
The Federal Reserve has been gradually raising interest rates as a way to keep inflation in check and to maintain the overall stability of the economy. This rate hike plan began in late 2015 and has continued steadily since then.
The last rate hike, which took place in March, brought the short-term interest rate up to a range of 1.50-1.75 percent. This was the sixth rate hike since the plan began, and many analysts are predicting that there will be at least two or three more before the end of the year.
Expert Predictions on Whether or Not Hikes Will End in May
Despite the ongoing rate hike plan, there has been some speculation about whether or not the Fed will actually raise rates in May. Here’s what five experts have to say on the matter:
1. Fed Officials are Likely to Continue Raising Rates
According to The New York Times, several Fed officials have indicated that they are likely to continue with the rate hikes, even if there is some volatility in the market. They have also indicated that they are anticipating stronger economic growth in the second quarter of the year.
2. May Will Likely See Another Rate Hike
Gus Faucher, chief economist at PNC Financial Services Group, predicts that there will in fact be another rate hike in May. “The Fed is on track to raise interest rates at the May FOMC meeting,” he said in a recent report.
3. Market Volatility Could Cause a Delay
Despite the likelihood of another rate hike, some experts are warning that market volatility could potentially cause a delay in the Fed’s plans. “If there is a big enough market pullback between now and the May meeting, the Fed may hold off,” said John Higgins, chief markets economist at Capital Economics.
4. The Fed is Cautious About its Rate Hike Plan
David Kelly, chief global strategist at JPMorgan Funds, believes that the Fed is being cautious about its rate hike plan, and that they may wait until June to raise rates again. “They are proceeding cautiously… I think they’re going to want to see more economic data before they pull the trigger,” he said in a recent interview.
5. The Rate Hikes Will Likely Continue Throughout 2018
Despite differing opinions on whether or not rate hikes will end in May, most experts agree that the rate hike plan will continue throughout 2018. “We think the Fed will end up hiking at least one more time this year, and maybe two more times,” said Joe LaVorgna, chief economist for the Americas at Natixis.
Conclusion
Overall, while there is some uncertainty about the Fed’s rate hike plan, most experts seem to agree that there will be at least one more rate hike in the near future, and that the overall plan will continue throughout the year. As always, market volatility and economic indicators will continue to play a major role in the Fed’s decision-making process, making it difficult to predict exactly what will happen in the coming months.
