Fed's Warning: Interest Rate Reductions Might Be Further Off Than Investors Expect

Wall Street anticipates the Federal Reserve might cut interest rates as early as May, possibly in March, but Federal Reserve officials, including Chair Jerome Powell, indicate that further rate hikes are still possible. Despite recent slowing inflation, the Fed’s focus remains on maintaining rates to reach a 2% inflation target, with some officials open to raising rates further if needed. This stance contrasts with investor optimism for early rate cuts in 2024.