VIDEO: Why We’re Convinced the Fed Will Deliver Less Than Expected

A Fed pivot is coming, but it may be less dovish than markets expect

The Federal Reserve is widely expected to raise interest rates by 50 basis points at its next meeting on May 4. However, we believe that the Fed will ultimately deliver less than expected. We believe that the Fed is recognizing the growing risk of an economic recession and will avoid raising interest rates too quickly.

The Fed Will Deliver Less Than Expected Rate Hikes

The Fed has been raising interest rates in an effort to combat inflation. However, inflation is still high and the economy is slowing. The Fed is now in a difficult position as it tries to balance its inflation-fighting efforts with its need to support the economy. We believe that the Fed will ultimately opt for a less aggressive approach to rate hikes.

The Fed Is Recognizing The Growing Risk Of An Economic Recession

The economy is slowing and the risk of an economic recession is growing. In fact, many economists believe that the U.S. is already in the early stages of a recession. The Fed is aware of this risk and is therefore likely to raise rates more gradually than it has in the past.

The Fed Will Avoid Raising Interest Rates Too Quickly

The Fed knows that raising interest rates too quickly could lead to a recession. Therefore, we believe that the Fed will avoid raising interest rates too quickly. We expect the Fed to raise rates by 25 basis points at its next meeting. This would be a less aggressive approach than the 50 basis point hike that is currently expected by the market.

The Fed's Decision Will Have A Significant Impact On The Economy And The Markets

The Fed's decision on interest rates will have a significant impact on the economy and the markets. If the Fed raises rates less than expected, it could lead to a rally in the stock market. However, if the Fed raises rates more than expected, it could lead to a sell-off in the stock market. Therefore, it is important to pay close attention to the Fed's decision on interest rates.