ReutersFed’s words in focus as markets bet rate hikes will soon endThe Federal Reserve has included that phrase in every policy statement since March 2022, when officials had just started raising borrowing costs from near zero and wanted to signal there was a lot more tightening ahead. At the same time, he said, “there’s going to be some caution” about doing anything that could feed market expectations that a pause in rate hikes is imminent. That could ease the financial conditions the Fed has fought hard to make more stringent and potentially kindle more inflation, he said, undermining its efforts to tame it.
