Interest Rates

Although markets expect rate cuts in 2023, the renewed momentum in the labor market might convince the central bank to keep rates higher for longer.

Facing the hottest cost pressures in 40 years, policymakers have lifted the target for the federal funds rate by 1.5% over the past two months—the steepest increase since the price-fighting era of Paul Volcker in the early 1980s.

Part 2 of 2: What corporate treasury groups need to get done between now and June 2023.

Part 1 of 2: Where are companies—and where should they be—a year out from the end of the global standard benchmark interest rate?

Following in the footsteps of inflation-slayer Volcker, Powell openly endorses raising rates into restrictive territory with the aim of cooling off the labor market.

Fed Chair Powell says 75 bps or 50 bps hike is likely in July, setting a "flexibly hawkish" tone for near-future rate policy.

Minutes from the meeting earlier this month indicate the Fed will continue large interest rate increases in the short term, but will reconsider that strategy this fall.

Inflation is front-and-center in policymaking, but "this is not a shock-and-awe Volcker moment."