The Federal Reserve will likely take a cautious approach as it prepares its final interest rate decision of 2023. Over the course of the year, it is likely that the Fed will remain focused on providing monetary accommodation to support the economy. This could include potentially maintaining its current near-zero federal funds target range and continuing its asset purchases. At the same time, the Fed will assess the performance of the economy and inflation and will likely make changes to its statement if necessary. The Fed will likely keep an eye out for any signs of inflation and will adjust policy accordingly. Overall, the Fed will take steps to ensure that the monetary policy is supportive of economic growth and price stability.
