Fed Rate Hikes to Continue As Economy Stays Hot
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The economy is still growing solidly with low unemployment and hotter than expected inflation, so the Fed has a strong case to keep rates higher for longer.
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Markets have pushed back expectations of Fed rate cuts into 2024 as economic data shows continued growth.
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Inflation remains above the Fed's 2% target and other economic indicators like jobs and consumer spending still look robust.
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The cumulative effects of past Fed rate hikes may not have fully impacted the economy yet, so more tightening could be needed.
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While both the Fed and markets expect eventual rate cuts, another hike can't be ruled out if economic conditions remain strong and inflation persists above target.