Federal Reserve , Announces Pause On Rate Hikes , Amid Easing Inflation.
On September 20, the Federal Reserve paused its string of interest rate hikes as it waits to see if its efforts over the past 18 months have finally slowed inflation.
NBC reports that the central bank kept its main policy rate in the range of 5.25% to 5.5%.
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The Fed reportedly cited an easing of economic conditions, while also noting that inflation remains above the agency's intended 2% target.
According to the Fed, the economy is in good shape as job gains slow and credit conditions tighten, likely slowing economic activity and inflation.
In August, the Bureau of Labor Statistics said that prices were up 3.7% compared to the same time in 2022.
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The string of rate hikes has increased interest rates on credit cards and mortgages, which have reached all-time highs.
The string of rate hikes has increased interest rates on credit cards and mortgages, which have reached all-time highs.
Investors fear that the Fed's actions could lead stock market sell-offs and a recession, which would result in widespread job losses.
NBC reports that the Federal Open Market Committee's next scheduled meeting is on October 31.
This does not assure that we won’t see another interest rate increase in the months ahead, Greg McBride, Chief financial analyst for Bankrate, via NBC.
Inflation pressures are easing, broadly speaking, but remain well above desired levels with the risk of further increases in oil prices, so the Fed cannot yet declare victory, Greg McBride, Chief financial analyst for Bankrate, via NBC
