HORSLEY: This has already been the most aggressive series of interest rate hikes since the 1980s, so it's gotten a lot more expensive to borrow money for a business or get a car loan or carry a balance on your credit card. LINDSAY OWENS: It's not the case that we have to keep hammering away at trying to slow growth in the labor market to bring down inflation. She wants the Fed to take a breather and see if inflation continues to settle down. That's a progressive think tank here in Washington. Lindsay Owens heads the Groundwork Collaborative. So some observers think it's time for a pause in rate hikes. And the job market, although it's still pretty strong, is showing some signs of losing steam. Ordinary people are starting to spend less money.
The construction and manufacturing sectors, which are particularly sensitive to interest rates, are in a slump. This would be the 10th rate hike in a row for the Fed, and you are beginning to feel the drag of those higher rates on the U.S. Why is the Fed going to push the pause button after today? SCOTT HORSLEY, BYLINE: Good morning, Leila.įADEL: So the Fed uses interest rate hikes to regulate inflation, which is still pretty high. Today's meeting comes on the heels of another bank failure, which could complicate the Fed's calculations.įADEL: NPR's Scott Horsley joins us now to explain. The central bank is expected to raise interest rates again this afternoon, but forecasters think that could be the last rate hike for a while. I'm Leila Fadel in Washington, D.C., where we're watching the Federal Reserve's 14-month battle against inflation.
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