Federal Reserve pauses interest rate hikes for June

The Federal Reserve held the federal funds rate at a range of 5 percent to 5.25 percent, ending a cycle of 10 consecutive rate hikes totaling 5 percentage points since March 2022. But Fed officials indicated rates would rise more in 2023.

“Considering how far and how fast we’ve moved, we judged it prudent to hold the target range steady,” said Fed Chair Jerome Powell at a press conference.

Recent indicators suggest economic activity has continued to expand at a modest pace. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated. The U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The committee remains highly attentive to inflation risks, said its official