What will the US FED do for its January 2022 meeting?

We haven't been analyzing the 4 US interest rates for a long time already and we will be analyzing the FED interest rates for 2022 for the very first time.

The US had created a new FED rate called the interest rate on reserve balance (IORB) which combined the previous IORR and IOER together.  Therefore, we will be analyzing the 3 US FED from now onwards.

IORB: 0.15%

The IORB has been relatively stable at 0.15% and is within the FED range of 0 to 0.25%.

EFFR: 0.08%

The EFFR had been hovering between 0.07% and 0.08% for the past few months.

On RRP: 0.05% (Fed is paying.)

On RP: No transaction at 0.25%. (Fed is receiving.)

EFFR: 0.08%

IORB: 0.15%

When the EFFR (0.08%) is lesser than IORB (0.15%), it means that the US is still under the monetary easing condition.  The high cash of US$1.71T deposited with the US FED also shows that there is excess liquidity and the banks have nowhere to invest in other profitable investments.  Thus, we do not see any stress in the US financial system and the banks also do not expect the US FED to hike its benchmark rates in January 2022 because there is no sudden spike in any FED rate.

In conclusion, the US FED is unlikely to raise its official rates in January but the FED will likely make an announcement for the rate hikes in March as time is running out to contain the high inflation.