Federal Reserve Announces Pause On Rate Hikes Amid Easing Inflation

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%. .
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. .
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