Signals point to gentler Federal Reserve in 2023

NEW YORK (AP) — Easing inflation and a cooling job market are raising hopes on Wall Street that a gentler Federal Reserve is on the way in 2023. That’s despite the central bank’s own adamance that it will keep raising rates from their current 15-year high and hold them there into 2024. Investors hope that when the central bank emerges from its next meeting on Jan. 31-Feb. 1 its messaging will take a more dovish turn. Major stock indexes have gained ground so far this year and the bond market is also signaling a potential easing of the Fed’s aggressive interest increases.