Fed’s Brad: Raise the peak interest rate forecast for this year to 5.625%

According to reports, Federal Reserve official Brad said on Friday that due to continued strong economic performance, he had raised his expectations for this year’s peak interest rate based on the assumption that banking pressure would ease. “My previous estimate was 5-3/8, but now it is 5-5/8, so it is slightly higher – 25 basis points higher – to reflect the strengthening of economic performance,” he said. He added that the increase in expectations is also “based on the assumption that financial pressure will ease in the coming weeks and months.”. “There is a negative scenario of worsening financial pressure, but this is not my basic prediction scenario.”.

Interpretation of this information:

Federal Reserve official Brad has raised his expectations for this year’s peak interest rate due to continued strong economic performance. His previous estimate of 5-3/8 has now become 5-5/8, reflecting a 25 basis point increase. Brad has made this change of judgment assuming that banking pressure would ease, meaning that the increase in expectations is based on the assumption that financial pressure will ease in weeks and months to come. Although there is a negative scenario of worsening financial pressure, he is not expecting this scenario to play out.