Fed Holds Rates Steady, Signals Possible Cuts Amid Moderating But Stubborn Inflation
• Fed opts to hold interest rates for remainder of 2023, signals up to 3 rate cuts next year • Inflation peaked at 6% and is now around 4%, but core inflation has risen the last 3 months • Wage increases like Uber drivers getting raises from $17 to $26 per hour could feed back into inflation • Core services inflation around 5-6% in areas like healthcare, restaurants, transportation • Fed will need to be "attentive to inflation risks" and not assume getting to 2% target will be the "last mile"