But the Fed will likely announce a smaller hike for a second straight time, and it could change some key wording in its post-meeting statement about future rate increases. Last year's substantial rate increases reflected near-unanimous agreement among Fed officials that they needed to move quickly to jack up borrowing costs to cool the worst inflation outbreak in more than 40 years. With uncertainty so high, several of the officials have said they favor smaller rate hikes, to allow time to evaluate the impact of their policies. To forestall that brighter outlook, most analysts expect Powell to talk tough at a news conference Wednesday about the need for further rate hikes. He may underscore a projection that Fed officials collectively issued last month that their benchmark rate would surpass 5% in the coming months.

Source: ABC News January 31, 2023 07:22 UTC