Downshifting its pace of tightening of monetary policy, the Federal Reserve’s monetary policy committee raised the federal funds target rate by 50 basis points, increasing that target to an upper bound of 4.5%. This marked a relatively smaller increase after four previous 75 basis point hikes. The Fed has clearly communicated it will continue to tighten monetary policy however, raising rates into the first quarter of next year. In fact, the Fed’s projections indicate it will likely raise by another 50 to 75 basis points at its next two meetings. …. …The Fed’s projections suggest rate cuts will not begin until 2024. And while the Fed will likely cut by about 100 basis points in 2024, per its own current projections, the central bank will maintain rates above its estimated neutral rate (2.5%) well into 2025.