Federal Reserve , May Pause Aggressive , Rate Hikes.
NBC reports that with low unemployment and high inflation, the Federal Reserve is still likely to increase interest rates to try and cool the economy.
However, experts think that the Fed might take a break from its aggressive rate-hiking program.
Since March of 2022, the Federal Open Market Committee has increased interest rates ten times in a row.
As of June 13, the key federal funds rate was at approximately 5%.
NBC reports that the rising federal funds rate has driven up other lending rates, including credit cards and corporate lending.
NBC reports that the rising federal funds rate has driven up other lending rates, including credit cards and corporate lending.
The Fed's aggressive approach to rate hikes has been meant to slow overall demand by making it more costly to invest or borrow.
NBC reports that inflation has come down from a peak annual rate of over 9% last June to reach 4% in May.
However, the Fed has previously stated that its goal is to reach 2%, meaning that further rate hikes may be on the way.
I don’t really see a compelling reason to pause — meaning wait until you get more evidence to decide what to do.
, Loretta Mester, president of the Federal Reserve Bank of Cleveland, via 'Financial Times'.
I would see more of a compelling case for bringing (rates) up, Loretta Mester, president of the Federal Reserve Bank of Cleveland, via 'Financial Times'
