The Federal Open Market Committee held a 2-day, high-stakes meeting last week that was particularly important, even though there was no subsequent change in the policy rate. The Fed officials elected to hold interest rates between 5.25% and 5.50%, but signaled that they might raise them one more time this year with, however, less conviction than in June, and that they were more willing to keep them near their current level throughout 2024. This message was formulated in a way to prevent investors from getting too optimistic about future rate cuts, even if confident that inflation will continue to move down sustainably, and that stronger-than-anticipated economic activity will hold.
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By Hubert Marleau
