Although a pause in interest rate hikes appears likely, cuts may be farther off than some believe. Still, investors have remained hyper-alert for signs that the central bank could let up its brisk clip of interest rate increases. The central bank also opened the door to a pause, accelerating bets that the Fed will hold rates steady at its next meeting in June and cut rates as soon as July. The Fed is unlikely to cut rates in JulyExperts say that the Fed won’t cut rates anytime soon for two key reasons: Inflation remains sticky, and the economy has stayed strong. That’s not to say that a Fed rate cut this year is completely out of the cards, said Nicole Webb, senior vice president at Wealth Enhancement Group.

Source: CNN May 15, 2023 19:20 UTC