Federal Reserve to pause rate hikes in the fight against inflation
- The Federal Reserve is set to hold interest rates steady in its fight against inflation15.
- The Fed seeks to maintain a stable inflation rate, with its current target being inflation averaging 2% per year over the long term24.
- The decision to pause rate hikes comes amid concerns about the impact of rising inflation on the economy and the potential for a prolonged period of high inflation15.
- The Fed's projections will also reveal the path for inflation over the next three years, which could provide insight into how long inflation may remain above the Fed's 2% goalpost5.
- The decision highlights the importance of monitoring inflation and its impact on the economy, particularly in the context of a global pandemic and its impact on supply chains and consumer behavior25.