The Federal Reserve may raise interest rates again this week. Investors are watching closely for signals about future increases.
The central bank is trying to control inflation, which remains high. A rate hike would make borrowing more expensive for consumers and businesses.
Wall Street will focus on the Fed’s “dot plot” after the meeting. This chart shows where officials expect rates to go in coming years.
The dot plot is updated four times a year. It offers clues about the pace and size of future rate hikes.
Investors want to know how high rates will climb. They also want to understand when the Fed might pause or reverse course.
Fed Chair Jerome Powell will speak after the meeting. His comments often move markets more than the rate decision itself.
Traders are pricing in a steady rise in rates through 2023. But uncertainty remains about how far the Fed will go.
The Fed’s next moves depend on inflation data and job growth. Both have shown mixed signals in recent months.
Higher rates can slow the economy and cool price pressures. But they also raise the risk of a recession.
Markets will react to any hint that the Fed is nearing the end of its tightening cycle.
