The Federal Open Market Committee, which sets interest rates, is largely expected to reduce its rate hike in December from four straight increases of 0. 75 percentage points to 0.5%.
Markets anticipate a couple more rate increases in 2023, bringing the funds rate to close to 5%. Then potential rate cuts before the year is over.
Markets saw an additional language in the FOMC’s post-meeting statement as a hint that future rate rises will be less.
Recently, a number of Fed officials have stated that they believe December’s rate would most likely move by half a point.
The consumer price index rose 7. 7% from a year earlier in October, which was the lowest number since January.