JP Morgan Chase CFO Jeremy Barnum spoke at an investor conference, giving his forecast for the Federal Reserve:
- we've got another couple of hikes in the forward
- at this point, it looks like peak (Fed) funds (rate) at something like 5.5%
Others are tipping similar:
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Federal funds are more often known as "fed funds".
- These are surplus reserves that commercial banks and other financial institutions deposit with regional Federal Reserve banks. These funds can subsequently be lent to other market participants who lack the necessary cash on hand to meet their lending and reserve needs. Since the majority of these loans are issued for the overnight period, they are unsecured and have a relatively low interest rate known as the federal funds rate or overnight rate.
