Wall Street anticipates an interest rate reduction by May, possibly March, but most Federal Reserve officials have stated otherwise.

While many authorities are more confident that interest rates will lower inflation, most are still considering another rate hike and suggesting rates will remain high for some time.

Fed Chair Jerome Powell said it would be premature to conclude with confidence that the Fed has achieved a sufficiently restrictive stance, and others agreed with him.

Despite warnings about rising rates, investors are anticipating the Fed will lower rates in the first half of 2024.

New data this week suggests inflation slowing again, and Fed Governor Chris Waller’s comments that declining inflation will lead to rate reduction even if the economy is stable.