Federal Reserve officials are ready to take a breather after more than a year of driving up interest rates ¡ª a move that¡¯s likely to be accompanied by a strong signal that they¡¯re prepared to keep hiking if needed.
Policymakers are expected to leave rates in a range of 5% to 5.25% at their June 13-14 meeting, allowing them to take stock of the outlook following recent strains in the banking sector. But Chair Jerome Powell will also have to placate a number of officials who worry progress on inflation has stalled and say the Fed may need to do more to cool a surprisingly resilient economy.
¡°They seem intent on taking a timeout at the June meeting next week to continue to assess banking sector stresses and make sure there aren¡¯t any lurking issues,¡± said Brett Ryan, senior U.S. economist at Deutsche Bank. ¡°But with a stronger labor market and really no signs of progress in those inflation metrics that Powell has highlighted, the Fed¡¯s got more work to do.¡±
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