January Fed Meeting Recap: Where Are Interest Rates Headed This Year?

Kathy Bogardus

Feb 01, 2023

The Federal Reserve met today to set rates and as our FBN® experts predicted last week, the Fed increased rates by 25 basis points, slowing its aggressive strategy of higher rate increases. 

The Fed points to modest growth in spending and production, robust job gains in recent months, low unemployment and inflation easing (but still elevated) in their decision to raise rates by only 25 basis points. (1)

“Consumer spending appears to be expanding at a subdued pace in part reflecting tighter financial conditions over the past year. Activity in the housing sector continues to weaken largely reflecting higher mortgage rates. Higher interest rates and slower output growth also appear to be weighing on business fixed investment.

Although inflation has moderated recently. It remains too high. The longer the current bout of high inflation continues, there is a greater chance that expectations of higher inflation will become entrenched,” said Federal Reserve Chairman Jerome Powell in an afternoon press conference. 

Inflation has been a main topic of conversation over the last year. As you see in the latest US Inflation Report chart below, we continue to see moderate relief across different segments of the economy.

[Land Loans 101: Everything Farmers Need to Know About Securing Farm Land Financing is a new guide designed to demystify farm land loans and the loan application process.]

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While inflation has continued to decrease over the past few months, we are seeing predictions that interest rates will continue to rise and peak in May before they come back down later in 2023. Even with the potential of rates decreasing later this year, the economy continues to be unpredictable and volatile. 

Don’t miss out on a piece of agricultural land due to rates. With FBN Finance you have the opportunity to purchase your land now and refinance when rates may be more favorable.

Looking forward

As the market continues to fluctuate with unpredictable volatility, it may be confusing and complicated when determining the best path forward for financing. And when land becomes available, it’s not always easy to sit and weigh your options of buying or not buying now. 

That’s why our customized financing options provide you the flexibility to decide your next move. Locking in a rate for 5 years to 15 years with variable rates may make sense if you’re planning to refinance or purchase more land in the near future.

But if you’re looking for a more stable and predictable option with your payments and budgeting, you may want to consider a fixed rate that starts at 10 years. 

No matter what situation you’re in,  FBN Finance is here to help you better understand the options available to make you feel confident in your decision.

Solutions to grow your business

We aim to make financing for family farmers simple and affordable. Every farmer has a unique situation therefore we provide a variety of options that may be useful in managing or growing your operation:

Operating lines

Operating lines will help you fund your operation as you see fit. There is no need to drive to the bank or wait days for your approval, with FBN Finance you can apply entirely online and receive a decision instantly. Learn more or apply todayand or learn more.  Once you have your line, you can easily use it to pay for FBN inputs in our Direct store.

Land loans

Even though rates are high, the market is predicting they will rise even higher. Now may still be a good time to purchase that Ag land you have your eyes on. We want to help you finance your expansion, apply for a land loan now.

Farmland Capital

Farmland Capital provides you the capital you need without impacting your original loan. Learn more here or start your application today.

  1. Federal Reserve Press Release

  2. Minutes from the January 2023 Federal Reserve Meeting

Disclaimer: The material provided is for educational purposes only. It is not intended to be a substitute for specific individualized tax, business, legal, investment or professional advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner, or investment manager. Neither Farmer's Business Network, Inc. nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in the material and any liability therefore is expressly disclaimed.

Financing offered by FBN Finance, LLC and its lending partners. Terms and conditions apply. To qualify, a borrower must be a member of Farmer’s Business Network, Inc. and meet all underwriting requirements. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.

Copyright © 2014 - 2023 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN”, “FBN Direct”  are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.

Kathy Bogardus

Feb 01, 2023

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