Investors Expect Fed Rate Cuts in 2023 Despite Officials' Stance
• Investors increasingly confident Fed will cut interest rates in 1H 2023 despite officials saying rate cuts not yet under consideration • Inflation figures encouraging; economic growth slowed dramatically since summer • Chance of first rate cut coming in March around 44% according to futures • Whenever rate cuts begin, pace likely gradual initially; no return to ultra-low rates • Fed Governor Christopher Waller recently cheered economic slowdown this fall as helping curb inflation