The Fed is expected to announce its fourth consecutive rate hike of three-quarters of a percentage point on Wednesday afternoon. But investors are hoping that Federal Reserve Chairman Jerome Powell will give a “testimony” soon and that the pace of rate hikes will slow down.
These dreams can fade away.
“I’m not sure if Powell is going back,” he said. Daniel DiMartino Booth, CEO and Chief Strategist at Quill Intelligence to CNN’s Alison Kosik on Wednesday’s “Market Now” show. “The onus is on him to stay the course.”
DiMartino Booth, who has worked at the Dallas Fed for nine years, said she thinks the Fed will continue to focus more on fighting inflation, especially as the labor market remains healthy.
The Fed will continue to be proactive about rising consumer prices. Rick Reeder, Chief Investment Officer of Global Fixed Income at BlackRock; He agreed.
“A pole could be aggressive. We still have strong high inflation and employment,” Reeder told Kosik.
But Reeder said this may be the last rate hike of this magnitude. That’s because previous rate hikes are impacting parts of the economy: “You’ll see it in housing and soon you’ll see it in cars and other interest rate sectors.
DiMartino Booth is more concerned about the impact of acceleration.
“The Fed will certainly affect consumption,” she added, adding that “the recession is a foregone conclusion.”
To make matters worse, she said, “there could be an unusually long period of time trying to heal from this.” [rate] Walking Cycle”.