Fed Expected to Hold Rates Steady, But Future Cuts Possible if Economy Slows
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Fed is expected to leave interest rates unchanged at upcoming meeting, but faces speculation about eventual rate cuts in 2023 to boost economy.
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Inflation edging closer to 2% target, job openings declining, and consumer spending more modest point to a "soft landing" without recession.
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Timing of any rate cuts depends on economic health and pace of inflation slowdown; cuts could come in 2023 or 2024.
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Financial markets may be too aggressive in expecting rate cuts as early as this spring.
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Fed will likely want to see more progress on inflation before cutting rates, to avoid risk of price increases rebounding.