Central Banks
Fed to Hike Big Again and Open Door to Downshift
- Chair Powell faces a communications challenge at briefing
- Fed may slow soon, but doesn’t want easy financial conditions
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The Federal Reserve looks set to deliver a fourth straight super-sized rate increase with Chair Jerome Powell repeating his resolute message on inflation and opening the door to a downshift -- without necessarily pivoting yet.
The Federal Open Market Committee is expected to raise rates by 75 basis points on Wednesday to a range of 3.75 to 4%, the highest level since 2008 as the central bank extends its most aggressive tightening campaign since the 1980s.