Fed Likely to Keep Rates Steady But Signals On Future Hikes In Focus
-
Fed expected to leave interest rates unchanged at 5.25-5.5% at this week's meeting, but hints on future policy will be key.
-
Question is if Fed will raise rates again this year/early 2023 and how long rates will stay elevated.
-
Fed's statement wording and Powell's comments will offer clues on likelihood of further hikes.
-
Recent jump in long-term rates could reduce need for more Fed hikes, but resilient consumer spending may keep officials alert.
-
Timing unclear - holding off now would give Fed time to assess trends, but optionality makes sense given uncertainties.