Federal Reserve watchers planned to watch the Chair Jerome Powell talk at the Brookings Institution for signs of a rate hike slowdown. And they got at least that. But any hopes for lower rates are far on a back burner.

Start with the relatively welcome news of a rate increase slowdown in Powell’s speech: “Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt. Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting.”

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Erik Sherman

GlobeSt

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