The U.S. Federal Reserve will probably begin cutting or tapering its asset-purchasing program by the end of the year, while an interest hike is probable in 2023 or sooner. This will have implications, including an appreciating U.S. dollar, rising global interest rates and tightening credit conditions. The Fed’s policy-setting Sept. 21-22 meeting of the Federal Open Market Committee (FOMC) indicated that it will probably announce reductions in quantitative easing of monetary policy on Nov. 3 while interest rates could increase starting in 2023, if not sooner. In its formal policy statement and updated accompanying documentation, as well as Chairman Jerome Powell’s press conference, the Fed indicated:...
