#And yet it moves platforms full
Even so, investors are predicting two Fed rate cuts by year’s end, according to CME’s Fedwatch tool.Īnother quarter-point rate increase on Wednesday would leave the Fed’s key rate at 5.1% - a 16-year high and a full 5 percentage points higher than in March 2022. We could still hike more if we think we need to, but we don’t know if we have to yet,’ ” said Derek Tang, an economist at LHMeyer, an economic consulting firm.Īverage long-term US mortgage rate falls to 6.35% this week, lowest level in 5 weeksĮven if Powell strongly suggests that the Fed will pause its hikes after this week, Tang said, he will likely emphasize that the Fed doesn’t expect to cut rates anytime this year. “He wants to kind of tell the market, ‘Don’t relax.
Instead, he will probably stress that further rate hikes could happen if inflation were to stay persistently high, well above the Fed’s 2% target rate. Yet he won’t necessarily send a clear sign that this week’s hike will be the Fed’s last. Yet economists and Wall Street traders will be more interested in what the Fed and Chair Jerome Powell signal in a statement and at a news conference about a bigger question: What comes next? And on that note, they may be disappointed.Įconomists say Powell will likely hint that the Fed is edging closer to a long-awaited pause in its rate increases.
WASHINGTON (AP) - The Federal Reserve is on track to raise its benchmark interest rate for the 10th time on Wednesday, the latest step in its yearlong effort to curb inflation with the fastest pace of hikes in four decades.
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