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.
Hiring and spending activity slowed further in March as consumers and businesses look for ways to cut expenses with borrowing costs climbing and the economic outlook dimming. But the strong momentum from the job market should deter an outright recession for some time with solid income growth supporting purchasing power. While the banking crisis has settled for now, banks are poised to further tighten lending standards and another rate hike from the Fed looks likely in early May. Most leading indicators suggest that a downturn is on the way, but pre-recession periods can linger, especially with the tight labor market unlikely to ease quickly.
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