Fed preview: Central bank set to slow rate hikes at final meeting of 2022

The Federal Reserve is expected to slow the pace of its torrid interest rate hikes when it concludes its two-day policy meeting Wednesday, as consumer prices have showed evidence of cooling for two straight months.

The central bank is expected to raise its benchmark interest rate by half a percentage point to a new range of 4.25% and 4.5%, marking the highest level since December 2007.

The Fed will announce its latest policy decision at 2 p.m. ET on Wednesday, with a press conference held by Chair Jerome Powell set to begin a half hour later.

This move will usher in a slower phase of rate hikes after the central bank raised the target range for its benchmark interest rate by 0.75% basis points at each of its last four policy meetings.

Fed Chair Jay Powell set the table for a 50 basis point rate hike last week, saying in a speech it, “makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down.”

Chair of the…

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This article was written by and originally published on finance.yahoo.com