However, that doesn’t mean the Fed is done hiking altogether: Officials have characterized their expected move as a “skip” rather than a “pause.” That could give the economy a little more time for the central bank’s aggressive rate-hiking campaign to filter through — and allow Fed officials to determine whether higher rates are bringing down inflation as expected or if they need to keep their foot on the gas.
Watch for signs of a hike in July The Fed may be taking a breather this month, but Fed Chair Jerome Powell will likely clarify in his news conference at 2:30 p.m. ET on Wednesday that a rate hike in July is still in play. While inflation has cooled from 9.1% last June to 4% last month, it’s still punishingly high for US consumers. “Employment growth is still strong, inflation is pretty sticky, so there is a case for more hikes,” said Michael Feroli, chief US economist at JPMorgan Chase.