London, UK, April 26, 2023 (GLOBE NEWSWIRE) -- Greenwood Kookmin Securities has released a new analysis of the U.S. Federal Reserve's upcoming monetary policy decisions, predicting a 25-basis-point interest rate hike in May, followed by steady rates for the remainder of 2023. 

The Greenwood Kookmin Securities report highlights concerns about an economic downturn and banking sector stress, but suggests that a rate cut is less likely due to inflation being more than twice the Fed's 2% target, strong labour market performance, and recent easing of banking sector stress.

"While inflation remains a concern, the resilience of the labour market and the gradual improvement of the banking sector suggest that the Fed will maintain a steady approach to interest rates after the anticipated hike in May." Commented Jonathan Chase, Director of Institutional Asset Management at Greenwood Kookmin Securities.

"We expect the unemployment rate to remain low, putting pressure on inflation. However, our analysis suggests that the Fed will be cautious in its approach, maintaining a stable rate environment for the remainder of 2023." Added Oliver Jones, Senior Vice President of Trading at Greenwood Kookmin Securities.

According to Greenwood Kookmin Securities, a majority of economists predict the Fed will keep its policy rate unchanged through at least this year, with only a few respondents forecasting a cut by the end of 2023. Inflation is expected to remain above the central bank's target until at least 2025.

While the risk of a U.S. recession in 2023 has increased slightly, most respondents expect it to be short and shallow. Greenwood Kookmin Securities believes that the Fed's cautious approach to interest rates will help mitigate the impact of a potential recession on the economy.

Greenwood Kookmin Securities
With a team of experienced and knowledgeable financial professionals, Greenwood Kookmin Securities are dedicated to delivering expert advice and tailored investment strategies to meet the unique needs of each individual client. We strive to provide our clients with peace of mind. Explore our company today by visiting: https://www.gkscapital.com