The Federal Reserve's Interest Rate Hiking Campaign: To Pause or Not to Pause?

The Federal Reserve is expected to pause its interest rate hikes at its next meeting, but consumers may not see any relief. The combination of rising interest rates and elevated inflation has squeezed household budgets, pushing more people into debt just when borrowing rates reach record highs. Credit card rates have topped 20%, mortgage rates are near 7%, auto loan rates are close to 7%, and federal student loan rates are set to rise to 5.5%. While deposit rates at some banks are up to 5%, if the Fed skips a rate hike at its June meeting, then those deposit rate increases are likely to slow.