Federal Reserve to Pause Rate Hikes After Expected 25 bps Increase

The Federal Reserve is expected to raise interest rates by 25 basis points at its meeting this week, bringing the federal funds rate target range to 5.0%-5.25%. Most economic data reports over the past week appear to back up the argument for another rate hike. However, the recent banking turmoil is likely to provide the reason to halt its rate hikes. The Fed is aiming to slow economic growth and cool down the rapid increase in prices.