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At least one financial expert expects the Federal Reserve to pause interest-rate hikes as early as next week, though that’s not necessarily good news for the U.S. economy.
But others are taking more of a wait-and-see approach. Mace McCain, chief investment officer at Frost Investment Advisors, said that while the latest inflation report was “modestly better than expectations,” inflation remains well above the Fed’s target.
“More troubling is that core CPI remains stubbornly above 5.5%,” McCain wrote in an email shared with GBR. “Four months into 2023, there has been no progress bringing inflation toward the Fed’s year-end target of 3.6%. If core inflation remains sticky, the newly data-dependent Fed will be faced with the prospect of more rate hikes, contrary to market expectations of rate cuts. The futures market projects three rate cuts by year end.”
Excerpted from GOBankingRates on May 17, 2023. To read full article, click here.
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