Federal Reserve Pauses Rate Hikes Amid Slowing Economy and Inflation

The Federal Reserve has decided to keep the main U.S. interest rate unchanged, pausing its series of rate hikes as inflation eases and the economy shows signs of slowing down. While the Fed acknowledges that inflation is still higher than its 2% target, it believes that economic conditions are solid and tighter credit conditions will help curb inflation. The central bank had raised interest rates at a rapid pace over the past 18 months to control inflation, but now it plans to take a wait-and-see approach. The Fed's next interest rate decision will be announced on November 1st.