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From the Founder: Five In-a-Row?

The Federal Open Market Committee’s (FOMC) last meeting was July 26-27 — another meeting is scheduled for September 20-21. Back in July, federal funds target rate was raised by 75 basis points (bps) to a range of 2.25% to 2.50%. This was the fourth Fed meeting in a row that ended in a rate hike and that decision came in at a unanimous 12-0 vote.

If the last meeting was 12-0 — what are the chances anything will change in the next meeting? Unlikely.

What is the federal funds rate, or fed funds rate?

It is set by the aforementioned Federal Open Market Committee (FOMC) of the Federal Reserve. It can be defined as the interest rate charged to various lending institutions such as banks on unsecured loans that are borrowed overnight.

So ultimately, if the banks are charged additional interest — you will too.

Here is the meeting schedule and circle the date in September because if history repeats itself then rates aren’t stabilizing, and most likely aren’t going down.

FOMC Meeting Schedule for 2022:

  • January 25-26
  • March 15-16
  • May 3-4
  • June 14-15
  • July 26-27
  • September 20-21
  • November 1-2
  • December 13-14

We’re a few weeks away from another FOMC meeting and if the current trend continues — we’ll be looking at at fifth hike in-a -row.