On Wednesday, the Federal Reserve will meet to discuss what to do with interest rates. There’s a debate as to whether the Fed will focus more on inflation (which still remains elevated at 6%—far above their 2% target) and raise rates, or will they instead prioritize the current pressures in the financial system and not raise rates? Given the impacts from recent events and the increasing risks to financial stability, we expect that the Fed will opt to keep rates where they are for the time being.
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