bannerFranchise News

Fed Weighing Half-Point Increase on Interest Rates in March

As inflation continues to cause woes for the nation’s economy, restaurants turn to menu-price increases to offset the economic impact to their bottom line.

After inflation reached a record 7.5% high in January 2022, Bloomberg reported that Federal Reserve Governor Michelle Bowman suggested that the Fed may issue a half-percentage point interest rate hike in March.

“I support raising the federal funds rate at our next meeting in March and, if the economy evolves as I expect, additional rate increases will be appropriate in the coming months,” Bowman said at an American Bankers Association Community Banking Conference. “I, as all of my colleagues will as well, will be watching the data closely to judge the appropriate size of an increase at the March meeting.”

The news of an interest rate increase may allow many franchise restaurants around the country to breathe a sigh of relief. Many brands throughout the country have initiated menu price increases as a way to help offset the economic issues caused by inflation. The restaurant industry is also grappling with staffing shortages and an ongoing supply chain crisis.

The Federal Open Market Committee will meet March 15 and 16, where it will address whether to make a half-point or quarter-point increase to interest rates. 

Related articles: