Larry Summers

The Federal Reserve will raise interest rates at least once more after its July 2023 hike, within the next few months (by end of January 2024).

“My best guess would be that we’re going to need more interest-rate increasing”

Said on

25 August 2023 · Bloomberg TV, Wall Street Week with David Westin, after Powell's Jackson Hole speech; he added the funds rate may have to go up once or more over the next few months

Source

Larry Summers: Fed should hike interest rates at least once more · Fortune (Bloomberg News)

Should come true

Jan 2024

How sure they sounded

my best guess would be

Categories

MarketsEconomy

Importance

2 of 5 · Whether the Fed hiked once more mattered mainly to markets and borrowers.

Outcome

Inaccurate

The Fed made no further hike after July 2023. It held the range at 5.25-5.5% at its September, November and December 2023 meetings and again on January 31, 2024, and its next move was a cut in September 2024.

Evidence:

• https://www.federalreserve.gov/newsevents/pressreleases/monetary20231213a.htm
• https://www.federalreserve.gov/newsevents/pressreleases/monetary20240131a.htm