The Fed just paused its rate hikes—keeping rates steady at 5.25% to 5.5%—after a string of aggressive increases aimed at cooling inflation. While this gives businesses and consumers a temporary reprieve, the central bank is watching closely for signs that inflation is truly easing without triggering a recession. Officials hint they may raise rates again later this year if inflation doesn’t cooperate, leaving markets on edge as the next few months shape the future of monetary policy.
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