Your Evening Briefing: Fed Staff Sees a 50-50 Chance of Recession
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US Federal Reserve Chair Jerome Powell delivers opening remarks during a news conference following a meeting of the Federal Open Market Committee at the central bank’s headquarters on Nov. 2. Minutes from that meeting show the Fed is likely to reduce the size of upcoming rate hikes.
Photographer: Chip Somodevilla/Getty Images North AmericaAs some have since telegraphed in public, US Federal Reserve officials concluded in private earlier this month that they should soon moderate the pace of interest-rate increases, likely leaning toward a 50 basis-point hike in December. And while some economic observers have predicted a recession with near certainty for months, Fed staff told officials during a Nov. 1-2 gathering that their assessment of the risk is about 50-50. However, this was the first such warning since the Fed began raising rates in March. Markets Wednesday seemed to take their cue from the prospect for shrinking rate hikes, and what that means for the fight against inflation. Here’s your markets wrap.
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