The FOMC kept the Fed Funds Rate Target unchanged at 5-5.25%. But the Fed may not have reached the peak in rates yet, economists at Rabobank report.

Dot plot shows a majority for two more hikes before the end of the year

As expected, the FOMC kept the target range for the federal funds rate unchanged at 5.00-5.25%. The decision was unanimous. However, the dot plot shows a majority for two more hikes before the end of the year.

This confirms the upside risk to our forecast of one more hike in July. With the federal funds rate still in negative territory in real terms, there is certainly scope for several more rate hikes if the recession takes longer to materialize.