Fed Hits Pause on Rate Hikes—Again—While Inflation Eats Your Savings

Jerome Powell & Co. kick the can down the road with another ’wait-and-see’ non-move

Markets yawn as central bankers prove they’d rather watch paint dry than make tough decisions

Meanwhile, your grocery bill keeps mooning while these guys debate spreadsheet projections

Bonus jab: At least crypto traders get volatility—the Fed’s stuck replaying 2015’s greatest hits

Fed keeps tightening policy, but holds off on rate hike

The Fed said it’s still focused on its long-term goals: keeping inflation NEAR 2% and supporting maximum employment. But with both inflation and labor showing signs of imbalance, the Committee chose not to increase rates yet.

Instead, it said future hikes will depend entirely on the next batch of data. “The Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the statement said.

They also confirmed they’ll continue pulling money out of the financial system by reducing their holdings of Treasury securities, agency debt, and mortgage-backed securities. That strategy is staying in place even as interest rates hold. The Committee made it clear they’re not backing off their tightening path entirely — just pausing for now.

The Fed said it’s ready to respond fast if anything shifts. If the data turns sour, they’ll tweak policy again. “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge,” they wrote. That includes signs of worsening inflation, unemployment, or other unexpected hits to the economy.

The Fed said it will base all future decisions on a wide range of information: job numbers, price levels, expectations, financial conditions, and what’s happening internationally. The central bank’s full assessments will look at every angle, not just one or two charts.

They’re not ruling anything out — and they’re not making any promises either.

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