U.S. Federal Reserve meet March 15-16: Here is what to expect

The U.S. Federal Reserve is all set for its second 2022 FOMC meeting on March 15-16 and what makes it more crucial is the rising inflation numbers. As per the latest data, the inflation in the United States has hit a 40-year high at 7.9%, which is the biggest year-on-year jump in consumer prices since 1982.

Fed Chair Jerome Powell made his intentions clear during Congressional testimony at the beginning of March, stating unambiguously that the central bank expects “it will be appropriate to raise the target range for the federal funds rate at our meeting later this month.”

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The FOMC, in its January meeting, decided to keep the target range for the federal funds rate unchanged at 0 to 1/4 percent. However, with inflation well above 2 percent and a strong labor market, the FOMC also mentioned that it would soon be appropriate to raise the target range.

Analysts and market experts are suggesting a 25 basis points hike by the U.S. Federal Reserve in the upcoming policy meeting.