A survey from Q3 2022 suggest concerns among the majority of the United States banking industry about the rising Federal Reserve interest rates. ** percent of the respondents worried that the Fed would overcorrect for inflation by raising the rates too fast and too high. In contrast, ** percent of the respondents were concerned about not raising the rates fast enough. In terms of the timeline, the majority of the respondents expected that the Fed would hit its peak rate in the first half of 2023. Most respondents believed that the peak rate would be between *** and **** percent. As of December 2022, the Federal Funds Effective Rate was *** percent.

The U.S. federal funds rate peaked in 2023 at its highest level since the 2007-08 financial crisis, reaching 5.33 percent by December 2023. A significant shift in monetary policy occurred in the second half of 2024, with the Federal Reserve implementing regular rate cuts. By December 2024, the rate had declined to 4.48 percent. What is a central bank rate? The federal funds rate determines the cost of overnight borrowing between banks, allowing them to maintain necessary cash reserves and ensure financial system liquidity. When this rate rises, banks become more inclined to hold rather than lend money, reducing the money supply. While this decreased lending slows economic activity, it helps control inflation by limiting the circulation of money in the economy. Historic perspective The federal funds rate historically follows cyclical patterns, falling during recessions and gradually rising during economic recoveries. Some central banks, notably the European Central Bank, went beyond traditional monetary policy by implementing both aggressive asset purchases and negative interest rates.

There is a discrepancy between the share of employees who understand their total annual health costs well and the share of employers who think their employees understand these costs well. Employers tend to overestimate how well their employees understand health care costs. This statistic shows the share of employees who understand their total annual costs for health care vs employers' viewpoint in the U.S. in 2023.

United States banking professionals believed in Q2 2022 that a Fed overcorrection was a probable cause for a recession. ** percent of the respondents believed that the too fast and too highly increasing Fed rates would result in an economic recession. ** percent of the respondents predicted that a recession would occur because of supply chain problems, while **** percent mentioned the conflict in Eastern Europe as the main cause for a possible recession.

Yearly citation counts for the publication titled "A transaction cost perspective on foreign market entry strategies of US and Japanese firms".

Financial overview and grant giving statistics of US Strategic Perspective Institute Inc.