Tightening Policies

According to a recent article by Nick Timiraos, the “shadow official” and mouthpiece of the Federal Reserve, more investors are currently anticipating that the Federal Reserve’s interest rate hike cycle may have ended due to the broader financial turmoil caused by the collapse of two regional banks in the United States in the past week. Michael, chief US analyst at JPMorgan Chase, said that suspending interest rate hikes now would send a false signal about the seriousness of the Fed’s efforts to address inflation issues, which could also exacerbate concerns that the Fed is hesitant to raise interest rates. On Wednesday, the market believed that the probability of the Federal Reserve reducing interest rates below 4% by the end of the year was close to 70%. Federal Reserve officials say their policies are mainly implemented by tightening the financial environment, such as rising borrowing costs, falling stock prices, and a stronger dollar. “But the effects of these policies will not…