The Federal Reserve recently announced that it is pausing its rate hikes due to lower-than-expected inflation. The move comes a year after the central bank began gradually increasing interest rates. The goal of the rate hikes was to prevent inflation from rising too quickly; however, the current economic environment has seen slowed wage growth, a milder rise in consumer prices, and economic slowdown in many countries. In light of these developments, the Federal Reserve decided it was necessary to pause its rate hikes for the time being to give the economy time to adjust. Analysts expect this pause to last several months, potentially through the end of the year.
