Federal Reserve set to pause rate hikes

Federal Reserve policymakers are expected to take their first break from hiking interest rates after making 10 consecutive increases in efforts to fight inflation. 

Although inflation is above the goal rate of 2%, on Wednesday the Federal Open Market Committee is expected to keep interest rates at the range set last month of 5%-5.25%, according to Bloomberg.

Federal Reserve Chairman Jerome Powell has suggested that he supports a break from raising interest rates to review the impact of previous hikes and the impact of recent banking failures on the economy. 

Inflation cooled slightly in April, the most recent month available, to 4.9% compared to the previous 12 months. The inflation rate is expected to recede further to 4.1% for May, which indicates that the rate hikes have been working.

Madeleine Hubbard is an international correspondent for Just the News. Follow her on Twitter or Instagram.