Fed Holds Rates Steady, Risks Recession in 2023 and Uncertainty in 2024 Economy
• Federal Reserve leaves interest rates unchanged for 2023, causing uncertainty about 2024 US economy
• COVID-19 pandemic has left longer-lasting economic impacts than initially thought
• Inflation, especially in services, remains high as workers aim to catch up with cost of living
• Risk of recession in 2nd half of 2023 if inflation stays high and Fed doesn't ease policy
• Nuance in economic data will be key in 2024 to gauge if/when Fed will cut rates due to recession vs soft landing