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'