Key Points
Federal Reserve officials paused on Wednesday following 15 months of interest-rate hikes but signaled they would likely resume tightening to cool inflation, projecting more increases than economists and investors expected.P)..
Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy, the Federal Open Market Committee said in a statement released in Washington Wednesday..
Policymakers also adjusted the language in their post-meeting statement, referring to how they would determine the extent of additional policy firming that may be appropriate, rather than the extent to which additional policy firming may be appropriate. ..
Both Powell and Fed Governor Philip Jefferson -- nominated for vice chair by President Joe Biden -- signaled they supported skipping a rate move in comments before this meeting, arguing they could afford to wait for more data as they assess the evolving outlook..
The inflation rate has declined from last years peak but is still elevated: Prices rose 4.4% for the 12 months through April, according to the personal consumption expenditures index, the gauge preferred by the Fed..
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