Posted 12/9/2023, 2:50:32 AM
Fed Expected to Hold Rates Steady But Future Path Uncertain as Inflation Moderates
- The Fed is expected to keep interest rates unchanged at the upcoming meeting, but comments about future rate changes could move markets
- Inflation has been declining, leading to speculation of possible rate cuts in 2023, but the Fed is likely to push back on that narrative
- The Fed has raised rates aggressively in 2022 to fight high inflation, slowing the economy and risking recession
- Fed Chair Powell has said talk of rate cuts is premature, and may hint rates could still go higher if inflation rebounds
- The Fed wants to avoid looking foolish again on inflation after being criticized for initially reacting too slowly