Powell is setting the stage for slowing Fed rate hikes

Jerome Powell, Chairman of the US Federal Reserve (Fed), is likely to confirm market expectations. Reports suggest that monetary tightening is expected to slow down. So, the regulator will raise interest rates at a slower pace next month, while a battle against inflation is going to continue until 2023. 

Powell is scheduled to deliver his speech on Wednesday, November 30. The event will take place at the Brookings Institution in Washington, D.C. The Fed Chairman will touch upon labor market issues, marking one of the last speeches before the regulator's meeting, scheduled for December 13-14. This is reported by Bloomberg, citing insiders.

It will be seen as an opportunity for Powell to reiterate his Fed counterparts' comments on a 50-basis-point rate hike. The regulator's previous meetings ended with four consecutive 0.75% rate increases. 

Investors predict that the Fed will moderate its monetary tightening cycle next month. Interest rates are expected to hit 5% in 2023, being the highest level in recent years. The current rate is 3.75%-4.00%, based on the prices of futures contracts in the market.