Latest Fed Rate Outlook , Has Mixed Impact , on US Stock Markets.br Business Insider reports that U.S. stocks saw br mixed results as investors reacted to the br latest Federal Reserve interest rate outlook.br Business Insider reports that U.S. stocks saw br mixed results as investors reacted to the br latest Federal Reserve interest rate outlook.br On January 9, San Francisco Fed President Mary Daly, br along with Atlanta Fed President Raphael Bostic, said br the central bank is likely to raise rates past 5.br On January 9, San Francisco Fed President Mary Daly, br along with Atlanta Fed President Raphael Bostic, said br the central bank is likely to raise rates past 5.br According to Business Insider, they also said br the Fed is expected to keep rates raised as br a means of combating record-high inflation.br CME FedWatch suggests 80 odds br that another 25-basis-point hike br is on the way in February.br Investors are also eagerly anticipating br the December Consumer Price Index br report due out on January 12.br That report is a key inflation measure br that will have an influence on the br central bank's upcoming policy decisions. .br At the closing bell on January 9, the S&P 500 ended the day br down 0.08, the Dow Jones Industrial Average ended br down 0.34 and the Nasdaq Composite went up 0.63. .br Meanwhile, Bank of America has warned br that stock valuations remain too high and br the market risks dropping by as much as 30.br Meanwhile, Bank of America has warned br that stock valuations remain too high and br the market risks dropping by as much as 30.br Morgan Stanley has warned br that the S&P 500 could br slip an additional 22. .br Morgan Stanley has warned br that the S&P 500 could br slip an additional 22. .br However, according to Moody's economist, the chances br of the U.S. avoiding a recession are growing as br the number of layoffs has been below expectations.