February 1, 2023
Fed Expected to Slow Rate Hikes in Signal Work’s Not Over
Federal Reserve officials look set to moderate interest-rate increases again, with Chair Jerome Powell keeping further hikes on the table while leaning against bets they will cut later this year.
The policy-setting Federal Open Market Committee is widely expected to raise rates by 25 basis points at the conclusion of its two-day meeting Wednesday, bringing its benchmark to a target range of 4.5% to 4.75%. The move would be another downward step for officials, who increased rates by 50 basis points in December, following four 75 basis-point hikes last year.
Euro-Zone Inflation Eases as ECB Debate Over Rates Heats Up
Euro-area inflation slowed more than expected, suggesting a more heated debate to come at the European Central Bank over how much further interest rates must rise.
China’s Growth Recovery Still Patchy Despite Better Outlook
A surge in Chinese spending last month has spurred more optimism about the country’s economic rebound, though weakness among manufacturers and sales of cars and homes still suggest the recovery isn’t yet on sure footing.
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