No Fed Rate Hike

At 11AM PST on November 1^st, the Federal Reserve announced that their interest rate would not be increased for the 2^nd straight month. Treasury Notes moved lower during the follow-up address by Chairman Jerome Powell. The 2-Year dipped below 5% for the first time since October 10^th. A summary of comments by J. Powell follows:

• Inflation has moderated
• Getting inflation to 2% has a long way to go
• Labor supply & demand continue to come into better balance
• The full effects of tightening have yet to be felt
• The economy has expanded well above expectations
• The labor market remains tight
• Could warrant further tightening
• A few months of good inflation data is only the beginning
• We still have a long way to go to get to their 2% objective
• We are not confident that the policy is sufficiently restrictive
• Tight policy is putting downward pressure on inflation
• Inflation is painful for people without financial resources
• They are committed to reaching their 2% inflation objective

Are more rate hikes in the cards for 2023 and beyond? And when might the Fed actually reduce interest rates? Some are estimating mid-2024, but most feel it will be at least until the end of 2024 prior to any reductions.