Despite the latest data suggesting it should do otherwise, the United States Federal Reserve is likely to push ahead with plans to slow interest rate hikes in the fight against red-hot inflation, said analysts on Tuesday December 6, Two latest reports released this month showed strong jobs growth and better than expected service sector activity.
The US markets ended Monday lower as investors believe that the data could lead the US Federal ReserveUS Federal Reserve to stick to its aggressive interest rate increases. Policymakers have been trying to curb spending by making it more costly to borrow.
The question is whether the last couple of days of stronger than expected economic numbers is going to be enough to knock the Federal ReserveFederal Reserve off of its slight dovishness and renew their rate hikes? David Dietze is the managing principal and senior portfolio strategist at Peapack Private Wealth Management.
US Fed chairman Jerome Powell said last Wednesday that the central bank could slow interest rate hikes as soon as this month.
Powell cautioned that the war against inflation is far from over and that the Fed's monetary policy will have to stay tight for some time to restore price stability.