The Federal Reserve is expected to announce a decision to slow the rate of interest rate hikes to a quarter point, but remain unrelenting in its fight against inflation. Stock futures fell as traders await the decision, with many expecting the Fed to stay the course and keep up its rate hike trajectory.
The move comes as inflation has cooled in recent months, leading many investors to believe that the Fed’s plan to raise rates is not the right approach. The Wall Street Journal reported that investors don’t believe the Fed’s inflation plan, citing a lack of confidence in the central bank’s ability to accurately gauge the economy.
The Fed’s decision will have a major impact on the stock market, and could cause volatility in the coming weeks. The Hill reported that volatility lies ahead as the Fed prepares to hike interest rates again, and investors will be closely watching the outcome.
It remains to be seen how the Fed’s decision will affect the market, but one thing is certain: the central bank’s rate hike decision will have a major impact on the stock market in the near future.