Central Banks
Fed to Downshift to Half-Point Hike But Point to Higher Peak
- Fed officials are expected to raise rates by 50 basis points
- Fresh projections could shed light on how high rates may go
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The Federal Reserve is poised to moderate its aggressive tightening on Wednesday while signaling that interest rates will ultimately go higher than previously forecast.
The tricky part for Chair Jerome Powell will be convincing investors that this isn’t a dovish pivot and that officials won’t prematurely end their assault against inflation that’s running three times higher than their 2% goal.