DWS: Response to the Fed's interest rate decision

DWS: Response to the Fed's interest rate decision

2 november 2023

Rente Fed
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Christian Scherrmann, US Economist at DWS, responds to the Fed's interest rate decision:

'It seems that Chairman Powell and his colleagues remain in the hawkish-but-do-less-at-least-for-now camp. After the blockbuster growth in the third quarter and the uncertainty ahead, this is certainly a wise thing to do.

With respect to market-driven tightening of financial conditions, Chairman Powell basically gave us the guidance that we somewhat expected: if the markets keep financial conditions tight - i.e., not flirting with rate cuts right now - they can proceed cautiously with doing nothing and wait and see how past rate hikes affect the economy. But as soon as conditions start to ease, another rate hike certainly is on the table.'

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