How much will interest rates rise in 2023?
In the late 1970s, Congress passed a law that clarified the mission of the Federal Reserve to focus on four main objectives: full employment, economic growth, price stability and a healthy trade balance.
Last month, the unemployment rate hit 3.5 percent, reaching the historically low level seen in February 2020. This low rate has supported nominal wage increases, meaning workers are paid more, but those increases do not reflect increases in their disposable income, or what is called “real wages.”
The December report could be a sign that the Federal Reserve may continue to raise rates, but some economists believe more data is needed before making a final decision. Regardless, the central bank’s own projections show rates rising in 2023. Read our full coverage to find out how high they are expected to go.