WASHINGTON–The Federal Reserve is now expected to pull back on the pace of its aggressive rate hikes as soon as upcoming December meeting, according to its chairman.
“The time for moderating the pace of rate increases may come as soon as the December meeting,” Fed Chairman Jerome Powell said in remarks at the Hutchins Center on Fiscal and Monetary Policy. “Despite some promising developments, we have a long way to go.
The Fed has “not seen clear progress” on decades-high inflation plaguing the economy, Powell added.
The Federal Reserve Open Market Committee is next scheduled to meet Dec. 13-14.
Being Closely Watched
As CNN noted, investors have been closely watching for any indication that the Fed might slow or even pause its punishing schedule of rate hikes — the much-talked-about “pivot” that would “release the brakes the central bank slammed on the economy.”
“But Fed officials have ramped up their rhetoric in recent weeks to disseminate the message that there’s much more work to do, and will forge ahead with rate increases — albeit smaller — until the current bout of decades-high inflation shows signs of abating,” CNN added in its analysis.
‘Number-One Concern’
New York Federal Reserve President John Williams told the Economic Club of New York earlier this week that inflation remains the “number-one economic concern across the globe,” citing underlying inflation in the service sector as “the most challenging” aspect of the battle.
The Fed has increased its benchmark lending rate six times during 2022 as it has sought to temper inflation.