Fed Chair Powell Signals More Rate Hikes Despite Cooling Inflation

Federal Reserve Chair Jerome Powell announced that "nearly all policymakers" view that some further rate hikes will be appropriate this year, breaking the central bank's streak of 10 straight hikes in 14 months. The median expectation for the 2023-end federal funds rate increased to 5.6% from 5.1% at their March meeting. The Fed is watching commercial real estate very carefully, and dynamics in the labor market are about as central to their discussion as any topic. The Fed officials considered it "prudent" to keep the rate unchanged at this meeting, and it will take time for other sectors to see the effects of higher interest rates.