Fed Pauses Interest Rates Due To Inflation Losing Steam, But More Hikes Coming
The Fed pauses interest rates, citing inflation numbers losing steam, as per Watcher Guru. FED Chair Jerome Powell emphasizes commitment to return inflation to the 2% objective, and interest rate hikes are likely to continue. The Federal Reserves decision to pause interest rates for the first time in almost a year has been met with much speculation and discussion. Fed Chairman Jerome Powell has addressed the media to discuss the decision and its implications, breaking down the FOMC Meeting of June 2023 and its key talking points. Powell discussed the process of pausing interest rates and how this recent action does not determine the course the Federal Reserve will take in future meetings. He emphasized the Feds commitment to returning inflation to their 2% objective, noting that nearly all participants think further rate changes will be necessary. The decision to pause was seemingly derived from inflation data released earlier this year. Specifically, the data showed that inflation numbers have been losing steam, giving the Fed a window to pause its interest rate hikes. Powell noted that the Fed believes more interest rate hikes are to come, with almost a guarantee of consistent interest rate hikes in the coming meetings. One of the major points