The Fed will keep rates at their highest level in 22 years until July or later, according to

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The results from the FT-Booth survey suggest a divergence in perceptions about the US central bank’s monetary policy. The respondents, a broad cross-section of economists and market watchers, seem convinced that the Federal Reserve will maintain a more “hawkish” stance than the broader market anticipates. Currently, economists are closely watching the delicate balancing act of the Federal Reserve, which is tasked with cooling inflation without hampering economic recovery amid current global financial dynamics.

Contrary to the popular market sentiment, these findings hint at the possibility of higher interest rates and tightening economic measures. This divergence of views highlights uncertainties surrounding future economic scenarios — the pace of inflation, economic recovery post-pandemic, and the responses of central banks. Such an aggressive stance from the Federal Reserve would be aimed at keeping inflation under control, though it could also potentially impact borrowing costs, slow economic growth, and possibly influence investor behaviors and market dynamics worldwide.

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