The Bottom Line - December 2022

The Bottom Line - December 2022

December 16, 2022

A Slowdown in the Pace of Raising Rates, Not a Pivot

In regards to monetary policy, the Federal Reserve Bank appears to be in a transition phase.

This week, at its final meeting of the year, the Fed raised the federal funds rate by 50 basis points. This is a step down from its unprecedented series of 75 basis point hikes at each of the past four meetings. A slowdown in the pace of rate increases is needed because the Fed wants more time to see how past increases have impacted the economy.