U.S. FED-WATCHERS LOOKING FOR INDICATIONS OF A SLOWDOWN IN RATE HIKES AT WEDNESDAY'S ANNOUNCEMENT

Nov 02, 2022

By Jane Brown

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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.

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