Markets Suspect Interest Rate Hikes Are Done But The Fed May Disagree

After holding interest rates steady at 5.25% to 5.5% the Federal Reserve continues to outline potential scenarios for even higher rates. Fed Chair Jerome Powell stated at the November 1 post-meeting press conference, “The question we are asking is should we hike more?”

However, markets disagree, believing the economy is likely at peak rates already for this cycle. As such, there may be a disconnect between the move dovish assessment of markets, and somewhat hawkish language from the Fed.