Federal Reserve Officials Signal Possible End to Interest Rate Hikes

Inflation's steady decline could lead to a rate cut by spring, suggesting the central bank's aggressive streak of rate hikes might be over.

Federal Reserve officials, including Christopher Waller and Michelle Bowman, have hinted at a possible end to interest rate hikes, with Waller even raising the possibility of a rate cut by spring if inflation continues to slow.
The Fed's key short-term rate is currently at 5.4%, the highest in 22 years, and has been raised 11 times since March 2022 in an effort to combat inflation.
Inflation, measured year over year, has dropped from a peak of 9.1% in June 2022 to 3.2% in October.
The Fed's next meeting will take place on Dec. 12-13, and investors are overwhelmingly betting that the central bank will hold rates steady.
Recent data on hiring, consumer spending, and business activity suggest that economic growth is cooling from its rapid 4.9% annual pace in the July-September quarter, which could help further cool inflation.