Industry sets sights on 2023 as 0.75% November Fed hike 'widely expected'

Uncertain trajectory of policy

The asset management industry has set its sights on the future path of interest rates from next year, as a 75 basis points hike on Wednesday’s (2 November) Federal Reserve Open Market Committee meeting is “widely expected”.

Market speculation suggests the Federal Reserve is poised to slow to a more gradual approach to monetary policy tightening, with the impact of fast and aggressive interest rate hikes from the central bank becoming evident in economic data.  The US Conference Board's Consumer Confidence Index fell to 102.5 in October, reflecting consumer concerns about sticky inflation and a possible recession next year. The survey also showed signs of a cooling labour market.  Separately, October saw the fourth consecutive month of contraction in US business activity, with the US Composite Purchasing ...