October 2023 Market Update – Fed’s pause keeps pressure on markets

With the pace of inflation fading, the US Federal Reserve kept interest rates at the same level for the
second time this year, which is a sign that the hiking cycle may soon reach its peak

It was a mixed month for markets with stocks and bonds struggling after the US Federal Reserve (Fed) signalled interest rates would be higher for longer. After a two-day meeting, the Fed announced its federal funds rate would remain in the range of 5.25% to 5.5% – the second time this year the central bank has left them unchanged. Fed policymakers have suggested they could still be lifted one more time this year to a range of 5.5% and 5.75%.