2 November 2022
If you are covering the latest monetary policy announcement from the Federal Reserve, please see the following comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“Despite cooling off slightly, US inflation remains uncomfortably high and the labour market very tight, so it comes as little surprise that the Federal Reserve has today delivered yet another 75bps rate hike. This latest increase marks the fourth in succession - as was widely expected by investors - and reiterates the Fed’s aggressive response to the ongoing economic challenges.
“However, there remains a great deal of uncertainty over where rates will eventually peak, and there is a real concern that the Fed will end up over-tightening and will tip the US into a painful recession as a result.
“Today’s statement suggests the Fed still feels it has a long way to go in its battle to tame inflation, but we can expect the pace of future rate rises to slow as we head into the new year which should provide investors with some comfort.”
