Markets expect the U.S. Federal Reserve (Fed) to raise rates again on February 1, 2023, probably by 0.25 percentage points to 4.5%-4.75%. However, there’s a reasonable chance the Fed opts for a larger 0.5 percentage point hike. The February decision is the first of eight scheduled meetings for the Fed to set interest rates in 2023.
Inflation Worries
Markets expect the Fed to continue to raise rates early in 2023, due to inflation concerns. Recent data has shown that U.S. inflation is declining. After topping a 9% annual rate in June, November CPI showed inflation at 7%. Still, that recent decline in the rate of inflation is insufficient in the Fed’s view.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased