Federal Reserve Poised to Announce , Latest Interest Rate Hikes , Despite Slowing Inflation.br On February 1, the Federal Reserve will announce br its latest interest rate increase which comes amid br the central bank's aggressive campaign to slow inflation.br NBC reports that while there are signs that inflation br is slowing, some indications suggest the economy br is reflating, which could also send prices up. .br We expect Fed Chair Powell br will insist on the need hold br policy at a restrictive level br for some time to bring inflation br down toward the 2 target, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.br Powell will also stress that br history cautions strongly against br prematurely loosening policy, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.br Powell will also stress that br history cautions strongly against br prematurely loosening policy, Gregory Daco, chief economist at Ernst & Young’s EY-Parthenon consultancy, via NBC.br According to the 'Bloomberg' index, br financial conditions have eased to reach br the lowest level since last February.br These changes can be seen in declining average br mortgage rates, which have retreated back to br 6.13 after hitting a high of 7.08 in November.br NBC reports that the rising price of commodities like oil br and the improvement of the stock market have contributed br to a sense of cautious optimism regarding the economy.br NBC reports that the rising price of commodities like oil br and the improvement of the stock market have contributed br to a sense of cautious optimism regarding the economy.br The positive changes have eased fears of a global br recession, yet economists believe that the Fed will br continue to clamp down to prevent rapid economic growth.br According to Neil Dutta, the head of U.S. economics br at Renaissance Macro financial group, the Fed's br 0.25 interest rate hike may end up being too small. .br The Fed’s story only br works if the economy br is slowing down. br Sorry, but I don’t see it, Neil Dutta, head of U.S.