Central Banks
As Fed Signals Rate Pause, Powell Will Have to Placate Hawks
- Officials are expected to skip hike after a year of increases
- Some policymakers worry inflation isn’t falling quickly enough
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Federal Reserve officials are ready to take a breather after more than a year of driving up interest rates, a move that’s likely to be accompanied by a strong signal that they’re prepared to keep hiking if needed.
Policymakers are expected to leave rates in a range of 5% to 5.25% at their June 13-14 meeting, allowing them to take stock of the outlook following recent strains in the banking sector. But Chair Jerome Powell will also have to placate a number of officials who worry progress on inflation has stalled and say the Fed may need to do more to cool a surprisingly resilient economy.