The Fed Shows Its Dovish Side

The pause in tightening wasn't a surprise, but language changes from June have people wondering about an 18th hike

The Federal Reserve finally took a vacation from its two-year rate-hike cycle at its Aug. 8 policy meeting. Board members voted to leave the benchmark Fed funds target rate at 5.25% after a busy two-year tightening cycle, which began at the June, 2004, meeting. Then, the Fed funds rate sat at a mere 1%—a five-decade low.

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