After aggressive hikes, when will Fed cut interest rates?
The Federal Reserve, starting in the spring of 2022, began raising interest rates at the fastest pace in four decades to squash rampant post-pandemic inflation. Over 12 meetings, policymakers raised rates 11 times taking them from near zero to the 5.25-5.5% range, the highest level since 2001. The last increase, in July, was a quarter point hike after pausing the month before.
While the central bank may yet ratchet up rates even further depending on economic indicators, investors are now wondering when the cost of borrowing may decrease. Deutsche Bank Chief US Economist Matthew Luzzetti walks through some of the paths that may convince the Fed to lower interest rates.
