The Federal Reserve eased its foot off the brake earlier this year

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At a meeting held in late March, Fed chair Jerome Powell announced a rate hike of 0.25 percent point.

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That move, down from a half-point bump in December and in line with a rate increase in February, signaled a more positive outlook on stubbornly high inflation, but is not expected to be the last increase this year.

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The Fed will meet again next week to announce what is expected to be another hike.

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The Fed lifts rates to raise the cost of borrowing for businesses and shoppers. The goal is to curb borrowing, cool off an overheated economy and fend off inflation spikes.

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The trick is to moderate inflation without sending the economy into a recession, what economists call a "soft landing."

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That goal is under scrutiny as the U.S. and global banking systems watch the fallout from the collapse of Silicon Valley Bank and Signature Bank last month.

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Looking ahead, this is when the Federal Reserve plans to meet for the rest of 2023.

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