Interest rates are at their highest since 2007, but that could soon change.
Topline
The Federal Reserve signaled Wednesday its top decision makers are split over whether to pause its interest rate hike crusade, a crucial decision for the economy as inflation remains stubbornly high.Key Facts
Central bank officials are “uncertain” whether to pursue further increases to the federal funds rate, according to minutes released Wednesday from the Fed’s policy-setting panel’s meeting earlier this month.
Many investors had hoped the Fed would offer hints to indicate it would pause, or even decrease, interest rates, but the meeting notes did little to indicate such, with the Fed vowing to retain “optionality” with its monetary policy moving forward.
Inflation remains “unacceptably high,” the Fed said Wednesday, adding recent data shows inflation is cooling “slower than expected.”
Further rate hikes may be necessary if inflation comes down at an “unacceptably slow” pace, according to the minutes.
