Why Higher Fed Rates Are Not Totally Off the Table
Posted: May 10, 2024
- Federal Reserve unlikely to raise interest rates - Fed Chair Jerome H. Powell implies rates may not increase but does not rule it out - Various Fed officials hint that rates may rise if inflation persists - Economists expect inflation to slow by the end of the year - Investors predict interest rates will go down rather than up - Potential risks of inflation rising again could change this outlook - Overall expectation is for Fed to cut interest rates next.- Jerome H. Powell, the Federal Reserve chair, has said that raising interest rates again is unlikely, but he has not ruled out the possibility - The Fed held rates steady at 5.3 percent last week, indicating that further increases are unlikely - Investors do not expect the Federal Reserve to raise interest rates again - The possibility of a rate hike is not entirely off the table, according to recent Fed commentary
Summarized top reddit comments: - Fed is unlikely to raise rates in an election year, favoring stocks - Expectation of one rate cut in September to December timeframe - Bears believe Fed is not concerned with controlling inflation - Lowering rates could lead to more housing market speculation and further inflation
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