The Federal Reserve (Fed) is expected to deliver its seventh consecutive rate hike on Wednesday following its two-day meeting. Even though a 50-basis-point hike is a near-certainty based on every recent Fed communication, tomorrow’s release of the November Consumer Price Index (CPI) will provide another important data point to set the stage for monetary policy next year.1
Fed policymakers will also provide updated economic and interest rate forecasts on Wednesday, offering more clues about the timing for a possible pause in tightening. The Fed meeting will be followed by Thursday meetings for the European Central Bank and Bank of England, respectively. Approaching the end of a year marked by historic interest rate increases and bond market volatility, investors are likely to remain on edge until global central bankers become more confident their 2% inflation targets are within sight.
1Source: MarketWatch- U.S. Economic Calendar; as of 12/12/22
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