Higher rates outlook causes ripple effects.
- In September, the FOMC left policy rates unchanged at current range of 5.25-5.50%. The dot plot now shows that the committee currently expects to hike once more before the end of the year and only cut 50bps in 2024. Putting this all together, for markets, the FOMC meeting reiterated the “high for longer” narrative for interest rates. – GSAM
- Fed officials signaled last week that they plan to keep interest rates high for quiet a while. For families who don’t need to borrow, higher rates might not affect daily life too much. But for those who do, the Fed’s aggressive rate increases are really beginning to sting. “The bite is starting now”, said Liz Ann Sonders, chief investment strategist at Charles Schwab – WSJ
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