After a broad set of speeches and public appearances from Fed Reserve officials this week, a June rate hike at from the next Fed meeting on June 13-14 appears less likely. Banks tightening lending standards and rates reaching relatively restrictive levels are contributing factors. However, Fed officials are still taking a different position to financial markets, which do see the prospect of rate cuts later in 2023.
Jerome Powell, Fed chair, said at a conference on Friday that, “we haven’t made any decisions about the extent to which additional policy firming will be appropriate.” That marks a softening in tone from statements earlier in the year, suggesting more hikes, as Powell stated that, “the risks of doing too much or doing too little are becoming more balanced.”
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