Federal Reserve Poised to Announce , Latest Interest Rate Hikes , Despite Slowing Inflation.<br />On February 1, the Federal Reserve will announce <br />its latest interest rate increase which comes amid <br />the central bank's aggressive campaign to slow inflation.<br />NBC reports that while there are signs that inflation <br />is slowing, some indications suggest the economy <br />is reflating, which could also send prices up. .<br />We expect Fed Chair Powell <br />will insist on the need hold <br />policy at a restrictive level <br />for some time to bring inflation <br />down toward the 2% target, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.<br />Powell will also stress that <br />history cautions strongly against <br />prematurely loosening policy, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.<br />Powell will also stress that <br />history cautions strongly against <br />prematurely loosening policy, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.<br />According to the 'Bloomberg' index, <br />financial conditions have eased to reach <br />the lowest level since last February.<br />These changes can be seen in declining average <br />mortgage rates, which have retreated back to <br />6.13% after hitting a high of 7.08% in November.<br />NBC reports that the rising price of commodities like oil <br />and the improvement of the stock market have contributed <br />to a sense of cautious optimism regarding the economy.<br />NBC reports that the rising price of commodities like oil <br />and the improvement of the stock market have contributed <br />to a sense of cautious optimism regarding the economy.<br />The positive changes have eased fears of a global <br />recession, yet economists believe that the Fed will <br />continue to clamp down to prevent rapid economic growth.<br />According to Neil Dutta, the head of U.S. economics <br />at Renaissance Macro financial group, the Fed's <br />0.25% interest rate hike may end up being too small. .<br />The Fed’s story only <br />works if the economy <br />is slowing down. <br />Sorry, but I don’t see it, Neil Dutta, head of U.S. economics at <br />Renaissance Macro financial group, via NBC
