With inflation still hovering near its highest level in 40 years and the U.S. economy expanding in the third quarter, the central bank is expected to raise interest rates by another 75 basis points this week.
While voices in favor of slower interest rate hikes after this week’s meeting have been growing louder, Jason Furman, a Harvard economist who served as a top adviser to former President Obama, sees the fed-funds rate ultimately reaching 5.25% next year, with a significant risk for topping out at an even higher level.
