abrdn: Fed's rate hike pause might prove short lived

abrdn: Fed's rate hike pause might prove short lived

15 juni 2023

Rente Fed
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James McCann, Deputy Chief Economist at abrdn, comments on yesterday's Fed meeting:

'The Fed took a breather at its meeting today, breaking a run of 10 consecutive rate hikes which have pushed the Fed Funds Rate 500bps higher since the start of last year. Clearly there is a desire to see how the tightening delivered is affecting growth and inflation, especially given uncertainty over how aggressively and quickly this will bite.

However, updated interest rate forecasts from the FOMC today have penciled in another 50bps of rate hikes this year, meaning this pause might prove short lived. Indeed, absent some deterioration in activity, or a clearer deceleration in underlying inflation, it seems likely that the Fed will be back to tightening in July, or latest September.'

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