All articles tagged with #inflation fight
The unofficial consensus is that the US economy is heading towards a recession, either due to the resilience of the labor market and spending, which could jeopardize the inflation fight and force the Federal Reserve to tighten monetary policy, or due to the drag from previous tightening measures leading to a significant slowdown. A soft landing is considered unlikely.
Bond traders continue to doubt the Federal Reserve's commitment to its inflation fight into 2024, despite the odds of a quarter-point increase in the federal-funds target becoming a near lock at the Fed's policy meeting on May 2-3. Markets keep pricing in rate reductions in 2023's second half, contrary to the best guesses of Fed Chairman Jerome Powell and his colleagues that the key policy rate will end the year at 5.1%, which implies no cuts after the May hike.