Fed Likely to Hold Rates Steady But Cuts Possible Later in 2023 As Inflation Cools and Growth Slows
• Federal Reserve expected to leave interest rates unchanged at 5.25-5.50% due to declining inflation and improving consumer confidence
• Inflation has slowed in recent months, with CPI at 3.3% and the Fed's preferred PCE index at 2.6%
• Two consumer confidence indexes have reached 2-year highs on better views of current conditions and future outlook
• Signs emerging that post-pandemic economic growth has peaked, including fewer Americans quitting jobs
• Traders believe Fed could cut rates by March, but some economists think rate cuts unlikely before mid-year