On April 27, Kristina Hooper, chief global market strategist at Invesco, said that given the tightening credit conditions, the Federal Reserve may pause interest rate hikes at its May meeting.
While the market expects the Fed to raise interest rates by 25 basis points at its next meeting, Hooper said that she thinks “there’s also a strong possibility of no rate hikes, and what the Fed needs to do is take a step back and recognize that tighter credit conditions are critical to achieving its goals.” Significant boost to interest rates, there is really no need for further rate hikes.”
She said that the pause in raising interest rates will not surprise the market, mainly depending on how the Fed communicates at the press conference after the interest rate meeting.