Fed Predicts Interest Rate Cuts in 2023 After Aggressive Hikes to Fight Inflation
• Interest rates are high now but the Fed predicts cuts next year, implying 3 rate cuts in 2023 • Lower rates could make borrowing cheaper - mortgage rates and business lending costs may fall • Lower rates reduce economic risks and could soften the blow to the economy from past hikes • Rate cuts signal the Fed believes it has won the inflation fight after aggressive hikes this year • Lower rates are good for consumers and portfolios but also show worries about an economic slowdown