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HomeUnited States & CanadaUS Fed likely to pause rate hikes despite higher inflation

US Fed likely to pause rate hikes despite higher inflation

WorldUnited States & Canada

US Federal Reserve likely to pause rate hikes despite higher inflation

The Fed has raised interest rates 11 times over the last 18 months as it tackles inflation still stubbornly above its long-term target of 2 per centAnalysts and traders expect the Fed to hold rates steady in September in order to give policymakers more time to assess the health of the US economyUnited StatesAgence France-PressePublished: 10:05am, 17 Sep, 2023Why you can trust SCMP

The US Federal Reserve is widely expected to hold interest rates steady on Wednesday after a summer of mixed economic data, while leaving the door open to another hike if needed.

The Fed has raised interest rates 11 times over the last 18 months, lifting its key lending rate to a level not seen for 22 years as it tackles inflation still stubbornly above its long-term target of 2 per cent.

After falling sharply over the last year, inflation has ticked up again in recent months due to a spike in energy costs, keeping up the pressure on the Fed.

But analysts and traders still broadly expect the US central bank to hold rates steady on September 19-20 in order to give policymakers more time to assess the health of the world’s largest economy.

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