Fed Considers 'Substitute' Interest Rate Hike in June Meeting

The Federal Reserve is considering a "substitute" interest rate hike at its June meeting, which would involve adjusting the interest rate it pays on excess reserves held by banks. This move would signal the central bank's commitment to controlling inflation and supporting the economic recovery, without actually raising the federal funds rate. The Fed has previously indicated that it does not plan to raise interest rates until 2023, but some officials have expressed concern about rising inflation.