By Steve Rick, Chief Economist for CUNA Mutual Group
The latest economic and market data show a road to recovery, with slow growth in Quarter 1 through Quarter 2 of 2023. The U.S. economy is poised for a comeback next year, albeit rather slowly.
2023 Inflation and Interest Rate Predictions
Inflation slowed to 7.7% year over year (YoY), a good sign for 2023. Right now, next year’s inflation rate is forecasted at 4%. The supply side of the economy is working out issues in the supply chain, leading to a slowdown in inflation. The inflation rate will likely be high in Q1 and Q2 of 2023 but taper down as demand cools and supply ramps up.
Interest rates rose by 3.75 percentage points this year and are predicted to increase by 0.5 to 0.75 percentage point at the next meeting of the Federal Open Market Committee on December 14th.
The committee meets again in February 2023, at which time I expect them to raise rates by … (read on for Steve’s full article.)