The Federal Reserve just held interest rates and signaled future hikes at the same time - the move caught the market somewhat by surprise, and baffled many commentators. in a 5%-5.25% range, snapping a streak of 10 back-to-back hikes aimed at taming inflation that hit 40-year highs in 2022.that was good news for American consumers, showing that the annual pace of price increases declined to 4.0% - the lowest since March 2021.
The Fed's move to hold rates and signal hikes at once reflects an inconsistent approach that may have been influenced by the central bank's internal politics, Summers said.
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