Analysts warn of potential consequences as Fed considers pause in stock market support.
TL;DR Summary
The stock market is still betting against the Federal Reserve's interest rate projections, with markets pricing in a lower rate than what the Fed has indicated in its "dot plot." The majority of Fed members predict rates will end 2023 at 5% to 5.25%, but the market is only pricing in an 11.7% probability of that happening. Some investment strategists warn that this disconnect between market expectations and the Fed's policy could lead to volatility and weakness in the market.
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