How can a smaller move send a big message? That’s the dilemma in which the Federal Reserve finds itself as it meets to discuss its a target short-term interest rate in the week ahead.
There’s no doubt the central bankers will raise the borrowing rate for the eighth consecutive meeting in their effort to tamp down generational-high inflation. And there no doubt in the market they will hike rates by a quarter of a percentage point, according to the CME FedWatch Tool.
Such a “small” rate increase after much more aggressive changes comes with some big questions, though.
