Market Skepticism Persists as Fed Hints at Possible Rate Hikes

Federal Reserve officials have indicated that they may raise interest rates further to combat inflation, but market participants remain skeptical. While the Fed has paused its rate hike campaign for now, officials have emphasized that they are prepared to tighten policy if necessary. However, traders are only pricing in a 15% chance of a rate hike next month, down from 20% a week ago. Some economists believe that inflation will subside without additional intervention from the Fed, as wage increases slow and housing prices stabilize. The Fed is closely monitoring inflation data before making any further moves.