LendingTree chief economist predicts a pause at May 9 meeting

LendingTree chief economist predicts a pause at May 9 meeting

The next Federal Open Market Committee (FOMC) meeting will take place on Wednesday, May 9. LendingTree Chief Economist Jim Svinth forecasts the seventh straight pause in interest rate hikes.

“The economy is soft with housing being the biggest drag,” said Mr. Svinth. “Still, consumers continue to spend and inflation remains outside the Fed’s comfort zone. This combination means the FOMC will likely keep its Fed Funds target at 5.25% during the May 9 meeting.”

The Federal Reserve paused at the last six meetings – August 8, September 20, October 24 – 25, December 12, January 30 – 31, and March 20 – 21.

“The housing situation appears to be somewhat stabilizing, however, it’s still too soon to tell what the future may hold. But if the situation gets worse, and unemployment starts to tick up, this will give the Fed room to ease.”