Business View Magazine Dec-2022

11 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 12 AHEAD OF NOVEMBER FOMC, BIG BANKS SAW 4.875% PEAK FED RATE TARGET Source Michael S Derby, Reuters, First published November 25, 2022 (Reuters) -Wall Street’s biggest banks told the Federal Reserve ahead of its November policy meeting that they had increased their estimation of how far the central bank would raise rates. The banks, called primary dealers, said the Fed would raise its overnight target rate to a peak of 4.875% by March, according to a survey released Friday by the New York Fed. The banks were surveyed in October ahead of the Nov. 1-2 Federal Open Market Committee meeting. The peak federal funds rate banks reported in the dealer survey ahead of the September Federal Open Market Committee stood at 3.88% by the end of this year. At the Fed’s November meeting, it raised rates by 75 basis points, to between 3.75% and 4%, in a move that was widely expected. The Fed has been moving rates up aggressively this year to combat the highest inflation seen in 40 years. OPENING L INES At the Fed’s November meeting, it raised rates by 75 basis points, to between 3.75% and 4%, in a move that was widely expected. The Fed has been moving rates up aggressively this year to combat the highest inflation seen in 40 years.