Federal Reserve Pauses Rate Hikes As Inflation Remains High

  • The Federal Reserve, on Wednesday, decided to maintain the primary U.S. interest rate at its current level, opting to assess the impact of its extensive series of rate increases over the past 18 months in addressing inflationary pressures.
  • The central bank retained its primary policy rate within the range of 5.25% to 5.50%. This decision came as economic conditions showed signs of easing, even though inflation remained above the Fed’s target of 2%.
  • In its statement on Wednesday, the Fed noted that the economy remains robust, although job growth has slowed. Additionally, it acknowledged that tighter credit conditions are expected to decelerate economic activity and hiring while curbing inflationary pressures.