[Outlook-in-Five] Fed signals higher for longer rates

Last Thursday night, Federal Reserve Chairman Jerome Powell cautioned investors that the central bank does not need to reduce interest rates quickly. As interest rates approach neutral levels, the pace of cuts may need to slow down, as the Fed is uncertain about the long-term federal funds rate that will keep inflation aligned with its 2.00% target.  Powell's remarks support our view that the Fed will stop easing early when the federal funds rate nears 4.00%. To learn more, tune into the latest episode of our podcast featuring Chief Economist Mansoor Mohi-uddin.