Fed Sticks to Rate Hike Stance Despite Growing Bets on 2023 Cuts
• The Fed is sticking to its "higher for longer" stance on interest rates, but markets are increasingly betting on rate cuts in 2023 based on cooling inflation.
• Key economic indicators like jobs, GDP growth, and declining inflation measures suggest the economy remains strong despite rate hikes.
• Markets are dismissing the Fed's hawkish stance, with stocks rallying on Fed Chair Powell's December 1st hawkish comments.
• The Fed is losing credibility, as markets look at the same data but see rate cuts on the horizon within months.
• Dovish voices like Fed Governor Waller suggest rate cuts could come in 2023 if inflation continues declining for several more months.