Fed’s Message That Rates Will Stay on Hold for ‘Some Time’ Clashes With 2023 Rate-Cut Bets

Traders are pricing in Fed rate cuts in second-half of 2023
Economists wary of rising inflation volatility on new scarcity

WATCH: Sarah Hunter of KPMG Australia discusses Fed policy, prospects of China’s economy, and the implications for global markets and economies.Source: Bloomberg

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By Craig Torres and Liz Capo McCormick

December 11, 2022 at 3:00 PM UTC

Updated on

December 12, 2022 at 12:16 AM UTC

This article is for subscribers only.

Federal Reserve Chair Jerome Powell has history on his side as he and colleagues split with Wall Street over how long interest rates will stay high in 2023.

After the fastest tightening of monetary policy since the 1980s, the central bank looks set on Wednesday to increase its benchmark rate by 50 basis points in a downshift after four straight 75 basis-point moves to curb inflation.