The Fed’s Interest Rate Strategy Is Getting Tricky as Plans to Skip a Hike Emerge
- Powell must explain why Fed is pausing now, but isn’t done yet
- Holding rates steady in June could make it harder to restart
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The Federal Reserve’s June meeting is shaping up to be one of the trickiest in its 15-month campaign to tame inflation: Chair Jerome Powell seems intent on skipping an interest-rate increase, while explaining to the public that officials aren’t done yet.
The strategy is sensible, confusing and risky all at once, Fed watchers say.