Finance & Economy
US Federal Reserve Expectations - H2 2023
Published on
Author: DISHA PRAFUL SUKHANI
- Senior Loan Officer Opinion Survey reported tighter bank lending standards and weaker demand.
- Robust JOLTS data and declining response rates overstate labor market strength.
- Despite robust NFP data, wage growth and unemployment pointed to a slack.
- Inflation moving in the right direction but still way off Fed’s 2% target.
- One-off income growth in January supported Q1 consumption expenditure.
- GDP growth expected to slow as past rate hikes work through the economy.
- Future rate hikes cannot be ruled out if incoming data turns out to be robust.
- Policy rates to remain higher for the remainder of 2023; Rate cuts seen in 2024.