Two-thirds of U.S. residents believe inflation will be worse in 2023 than it was last year, according to a new survey by WalletHub. The pace of inflation has dropped in recent months, but the poll indicates the subject is still top of mind for many people. Eighty-seven percent of respondents in the January survey said they are concerned about inflation, up from 79% in a December survey. Two in three respondents expect inflation to be worse in 2023, with nearly nine in 10 people saying inflation will affect their spending.
The Federal Open Market Committee will meet Jan. 31-Feb. 1 to consider raising the federal funds rate to counter inflation. Fed Governor Christopher Waller last week said that he favors increasing the rate by 25 basis points, while other committee members have indicated they may slow the pace of rate hikes. A 25-basis point hike would cost credit card users at least $1.6 billion in the next 12 months, according to a WalletHub analysis. The proposed increase has already increased the cost of the average 30-year mortgage by $9,360 over the life of the loan, as rate hikes are usually priced into mortgage rates in advance, the company said.
ABA Banking Journal Staff
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