The Fed delivers a dovish rate increase

Economic Insights by Nationwide · Mar 23, 2023 · 16m

At the outset of March's FOMC meeting, there was speculation that the Fed would pause rate increases, especially with the current banking crisis. However, at the conclusion of the meeting, Chairman Powell announced a 25 basis point increase in interest rates — the ninth consecutive increase of this tightening cycle. How are markets reacting to this news? What impact are these rate increases having on inflation and the overall economy? And what is our outlook for a potential recession? Nationwide’s Chief Economist Kathy Bostjancic and Deputy Chief Economist Bryan Jordan provide their analysis…