The Federal Reserve is likely to hold off on raising interest rates this month, despite its ongoing efforts to curb inflation. A top Fed official has signaled that any further increases will probably wait until year-end.
The central bank has been tightening monetary policy to slow economic activity and bring down prices. While inflation remains above target, recent data has shown some moderation, giving officials room to pause.
Markets had anticipated another hike in September, but the commentary suggests a more cautious approach. The Fed is balancing the risk of overheating the economy against the need to restore price stability.
Economists now expect the next move to come in December, depending on upcoming employment and inflation reports.
Source: New York Times Business · Summarized by HeadlinesBriefing