Summary
After eleven consecutive rate rises, the Fed reached 5.25-5.5% — the highest level in 22 years — and paused. With inflation falling but not yet to target, and the labour market resilient, the Fed faced the delicate question of how long to hold rates before cutting.
The pause decision, Powell's guidance on future rate cuts, and market expectations for when easing begins.
Analysis of the economic effects of sustained high rates versus a premature cut that allows inflation to re-accelerate.
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US–China Strategic Competition
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