Posted 12/20/2023, 2:29:00 PM
Fed Holds Rates Steady But Hints At Future Cuts, Stoking Market Rally While Urging Caution
- Fed officials held rates steady but projections show cuts possible in 2023, sparking stock market surge
- Some Fed officials are urging caution about market's enthusiasm over potential rate cuts
- Markets projecting earlier and more significant cuts than Fed projections
- Fed needs to "strike a more hawkish tone" to offset market irrational exuberance, says former FDIC chair
- Inflation has improved but still too high for Fed to declare victory