ANZ has projected that the Federal Reserve will put a pause on interest rate increases, anticipating that the current real policy rate is adequate for achieving the central bank's inflation goal. This forecast comes in light of October's Consumer Price Index (CPI) figures and a soft Non-Farm Payrolls jobs report.
The bank expects that during the Federal Open Market Committee (FOMC) meeting in December, interest rates will remain at their current levels. This would be slightly below the FOMC's September median prediction by 25 basis points. ANZ's analysis suggests that the measures taken so far should be sufficient to stabilize prices at the Fed's target inflation rate of 2%.
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