“Fed mouthpiece”: Federal Reserve officials hint that interest rate hikes may soon stop

According to reports, Nick Timiraos, the “Federal Reserve mouthpiece”, wrote that the Federal Reserve raised interest rates by another 25 basis points, but suggested that the turmoil in the banking system might end its interest rate hike earlier than expected two weeks ago. Federal Reserve officials hinted in their policy statements after the meeting that they might soon stop raising interest rates. The Committee expects that some additional policy tightening may be appropriate. They abandoned the wording used in the previous eight statements, namely, that the Committee expected that “sustained interest rate hikes” would be appropriate. Federal Reserve Chairman Powell will answer questions at a 2:30 press conference. At that time, he may be asked to explain how recent banking pressures have changed officials’ forecasts of the economy and interest rates.

Interpretation of this information:

The Federal Reserve has raised interest rates by 25 basis points, however, recent turmoil in the banking system may lead to the interest rate hike ending earlier than expected. The Federal Reserve officials hinted that they may soon stop raising interest rates, abandoning the wording of their previous eight statements. The Chairman of the Federal Reserve, Powell, will be holding a press conference where he may be asked to explain how recent banking pressures have impacted the economy and interest rates.