Dec. 8, 2023, 5:03 a.m. ET
Credit…
Kendrick Brinson for The New York Times
Federal Reserve officials will hold their final meeting of 2023 next week. They are widely expected to leave interest rates unchanged when they announce their decision on Dec. 13, but fresh data on the job market and inflation could shape what officials forecast for next year.
The Fed raised rates rapidly from March 2022 to July of this year, ultimately pushing them to a range of 5.25 to 5.5 percent in a bid to wrestle rapid inflation under control by cooling the economy. But policymakers have held borrowing costs steady for months now as they wait to see the impact of their moves so far.
Price increases and hiring have slowed in recent months, and Wall Street investors now expect the Fed’s next move to be a rate cut — they even see a small chance that lower interest rates could come as soon as January.
Friday’s jobs data and a fresh inflation report set for release on Tuesday could inform Fed policymakers as they consider when to change policy again. Central bankers will release a fresh set of economic projections at the conclusion of their meeting on Wednesday. Those estimates will show where officials now expect interest rates, inflation and the unemployment rate to be at the end of 2024.