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Sunday, April 2, 2023

Fed expected to slow policy rate hikes

The Federal Reserve is expected to raise policy interest rates at a slower pace, by 0.25 percentage points to 4.50-4.75% when it meets on Tuesday and Wednesday, as US inflation continues to weaken, says Kasikorn Research Center (K-Research).

“Amid signs of weakening inflation, the Fed will consider raising the policy rate at a slower rate of 0.25 percentage points at the upcoming Federal Open Market Committee meeting,” the unit of Kasikornbank wrote in a paper.

US headline inflation fell for a sixth straight month to 6.5% in December 2022, the lowest level since October 2021.

However, inflation remains high and the US labour market is still strong, prompting market predictions that the Fed will continue to lift rates.

Looking ahead, the Fed’s rate hike will depend on key inflation figures and economic data.

K-Research expects the US economy in 2023, especially in…

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