The Future For US Rates: A Final Hike?

By James Knightley of ING Economics

Economic and Financial Analysis • Apr 29, 2023 at 9:00 PM EDT

Following the most aggressive tightening cycle seen in over 40 years, we expect the US central bank to signal a pause moving forward.

While another 25bp move is widely expected from the Federal Reserve over the coming week, the path beyond its next meeting remains unclear. Following the most aggressive tightening cycle seen in over 40 years, we expect the central bank to signal a pause moving forward.

Another 25 basis point hike is widely expected from the Federal Reserve in the coming week - but the path for rates beyond the central bank's next meeting remains unclear. After the most aggressive and rapid monetary tightening cycle seen in over 40 years, ING's James Knightley says a pause could very much be on the cards before year-end.

As inflation continues to run hot and banking stresses lead to tightened lending conditions in the US, uncertainty looms over the near-term outlook for monetary policy. Catch up on our latest Federal Reserve preview here

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