'Higher rates are here for longer than people think' -adviser
STORY: Fed Chair Jerome Powell and his 18 fellow central bankers are still expected to back a fourth-straight 75-basis-point rate hike at their meeting next week.
But betting in rate futures markets is now running strongly in favor of a half-point increase at the Fed's December meeting -- a move that would bring the policy rate to a 4.25%-4.5% range -- and no more than a half a point further over the next two meetings.
Bets are also increasing on interest rate cuts for the latter part of 2023, a reflection of trader expectations that for a Fed response to what many economists expect by then will be at least a mild recession.
