Fed rate hikes: Cause for pause?
Fed watchers see potential for a pause in rate increases, but recent reports show the economy still runs hot.
Several economic indicators are flashing yellow, fueling fears of a recession. Additional rate increases are expected this summer after the central bank raised its short-term rate by a half-point in May. With accelerated rate hikes and surging inflation, signs of a weakening economy are starting to show. Still, the economy has proven resilient in the face of many challenges. In the second half of 2022, the hope is that inflationary pressures have eased, and the market has passed an uncomfortable correction.
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