Confused about where Fed policy is headed? Don’t worry. Professional forecasters are too

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Confused about where Fed policy is headed? Don’t worry. Professional forecasters are too
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Where will the Fed’s benchmark policy rate be by the end of 2023? Economists’ predictions ranged from just under 1% to just under 4%, a survey showed.

If you’re confused where interest rates are going to end up in 2023, you’re not alone. A new survey from the National Association for Business Economics shows a wide split among their members on whether rates will go higher or lower.

The highest five median forecasts expected the Fed to continue to push up its policy rate to just under 4%.The survey of 53 professional forecasters was conducted in early May. The good news is that a large majority of economists think that inflation will peak sometime this year. Just over a third of the economists think inflation already peaked in the first quarter.

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