Nov 02, 2022
By Jane Brown
Looming over the U.S. Federal Reserve meeting that ends Wednesday is a question of intense interest: Just how high will the Fed’s inflation-fighters raise interest rates and might they slow their rate hikes as soon as next month?
The Fed is expected to announce a hefty 0.75-percent hike in its key short-term rate, the fourth straight such increase.
The move will lead to still-higher loan rates for many businesses and consumers.
What many Fed-watchers hope is that Chair Jerome Powell will hint at a news conference that the central bank may ease the pace of its hikes, perhaps to a half-point in December and two quarter-point hikes next year.
Should Powell indicate a slowdown in coming rate hikes, its expect this could spark a rally in stock and bond prices and lift fears of a recession.
Last week, the Bank of Canada hiked its key lending rate by 0.5-percent with the next increase expected in December.