The Fed is expected to raise rates by a half point. Investors wonder if it will get more aggressive

Posted on AllSides May 3rd, 2022
From The Center
Graeme Jennings | Reuters

The Federal Reserve is widely expected to raise its fed funds target rate by a half-percentage point Wednesday, but investors will be more focused on whether it signals it could get even more aggressive with future rate hikes.

The Fed is also expected to announce the start of a program to wind down its roughly $9 trillion balance sheet by $95 billion a month, starting in June. The 50-basis-point hike would put the fed funds target rate range at 0.75% to 1%.

That fed funds target rate after this week’s...

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