Following October's favorable inflation data, the odds of an eventual slowdown in the pace of federal rate hikes have increased ahead of 2023. According to the November Fed meeting minutes, most officials opined that smaller rate hikes "would likely soon be appropriate."
The CME FedWatch tool expects a more than 80% probability that the Federal Reserve will go for a 50-bps hike in December. This comes after four consecutive 75 basis point rate hikes. Cleveland Fed President Loretta Mester said, "I think we can slow down from the 75 at the next meeting. I don't have a problem with that, I do think that's very appropriate."
