Fed Expected To Raise Rates Again, The Bigger Question Is What Follows

Finance MARKET_WATCH

The U.S. Federal Reserve is expected to announce a decision to raise rates 0.25-percentage-points on Wednesday, May 3. But rate decisions for the remainder of 2023 are less clear. 

 

However, the bigger question is what follows at future Fed meetings in 2023. Financial markets fear a looming recession and see the Fed cutting rates in response, however the Fed have signaled that they intent to hold the line with high rates until inflation is clearly beaten.

 

Inflation Down, But Not Out

 

In recent months inflation has dropped well below the peak levels of 2022 on most metrics. Yet still remains well above the Fed’s target. Part of the reason for that is housing costs, which make up a large proportion of the Consumer Price Index, and are continuing to rise using the CPI’s methodology, even if most industry sources show home prices declining. The Fed has signaled it wants to see inflation under control before it contemplates cutting rates. Currently, inflation is running at a 5% annual rate compared to the Fed’s 2% goal. That’s too high in the Fed’s view.

 

Source : [Fed Expected To Raise Rates Again, The Bigger Question Is What Follows](www.forbes.com/sites/simonmoore/2023/05/01/fed-expected-to-raise-rates-again-the-bigger-question-is-what-follows/) by Simon Moore, Senior Contributor - Fed May Hike•Forbes - Investing by Simon Moore, Senior Contributor / May 01, 2023

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

Automata ICO Limited, a Company incorporated in Ireland with its registered office at 3rd Floor Ormond Building, 31-36 Ormond Quay Upper, Dublin 7, D07 Ee37, Ireland registered in Ireland under number 690280 has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing, we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS.

Automata ICO Limited, a Permanent Establishment incorporated in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.