Wednesday, May 3, 2023 / by Fahad Karamat
Fed's Rate Hike Finale? Banking Ballet, Inflation Tug-of-War, and the Future Tune of the U.S. Economy
Just when you thought the Fed's rate hike playlist had one more track, they might have just hit pause. The latest quarter percentage point hike brings relief and renewed uncertainty in an economy dancing to many tunes. Let's decipher the song sheet.
The Rate Hike Marathon and Its Finish Line
The Federal Reserve, with its 14-month rate-hiking spree, has nudged the benchmark rate to a zone of 5-5.25%. After ten encores at consecutive meetings, it's an anticipated act but now seems to be taking its final bow for a while.
Inflation's Cooling Groove
Last summer's scorching inflation seems to be on a cooling trend. However, don't pack away those fans yet. At double the central bank's 2% dream target, the mercury is still high, with March data swinging to a 4.2% YoY rise.
Economic Sectors: Feeling the Rate Beat
The Fed's rate rhythm has sectors like construction and manufacturing tapping their feet more slowly. The dance floor of consumer spending, bustling in Ja! ...
The Rate Hike Marathon and Its Finish Line
The Federal Reserve, with its 14-month rate-hiking spree, has nudged the benchmark rate to a zone of 5-5.25%. After ten encores at consecutive meetings, it's an anticipated act but now seems to be taking its final bow for a while.
Inflation's Cooling Groove
Last summer's scorching inflation seems to be on a cooling trend. However, don't pack away those fans yet. At double the central bank's 2% dream target, the mercury is still high, with March data swinging to a 4.2% YoY rise.
Economic Sectors: Feeling the Rate Beat
The Fed's rate rhythm has sectors like construction and manufacturing tapping their feet more slowly. The dance floor of consumer spending, bustling in Ja! ...
