Here’s what to expect from the Federal Reserve meeting Wednesday

by | Jul 25, 2023 | Financial

WASHINGTON, DC – JUNE 21: Federal Reserve Chairman Jerome Powell testifies before the House Committee on Financial Services June 21, 2023 in Washington, D.C. Powell testified on the Federal Reserve‚Äôs Semi-Annual Monetary Policy Report during the hearing.Win Mcnamee | Getty Images News | Getty ImagesDespite an improving inflation picture, the Federal Reserve is expected on Wednesday to approve what would be the 11th interest rate increase since March 2022.Investors are hoping it will be the last one for a long time.Markets are pricing in an absolute certainty that the Fed will approve a quarter percentage point hike that will take its benchmark borrowing rate to a target range of 5.25%-5.5%. That would push the upper boundary of the federal funds rate to its highest level since January 2001.The more pressing matter will be whether Federal Open Market Committee officials feel they’ve gone far enough or if there’s still more work to do in the fight against pernicious inflation.”The signal will probably be, yes, we’re hiking, but then we think we can sit here for a while and see,” said Kathy Jones, chief fixed income strategist at Charles Schwab. “But no promises. They can’t give up the option.”Indeed, the Fed’s course is far less certain. Central bank policymakers almost unanimously believe inflation is too high, but hiking more from here carries risks to an economy that many think is heading for at least a mild recession.’The Fed should be done’Jones is part of a growing market chorus that thinks the central bank …

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