Rate Downshift Likely This Month

“The time for moderating the pace of rate increases may come as soon as the December meeting,” Fed Chair Powell said yesterday.

By Craig Torres | December 01, 2022 at 11:22 AM

Chair Jerome Powell signaled that the Federal Reserve will slow the pace of interest-rate increases this month, while stressing that borrowing costs will need to keep rising and remain restrictive for some time to beat inflation.

His comments, in a speech yesterday at the Brookings Institution in Washington, likely cement expectations for the Fed to raise interest rates by 50 basis points (bps) when they meet on December 13 and 14, following four straight 75 bps moves.

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