The Federal Reserve has paused interest rate hikes for the first time in 15 months, which has sparked concerns about a potential recession.
The Fed’s decision to pause comes as inflation starts to cool but also amid growing economic uncertainty. The war in Ukraine, the ongoing COVID-19 pandemic, and supply chain disruptions are all weighing on the economy.
Some economists believe the Fed’s pause indicates they are worried about a recession. Others believe that the pause is simply a way for the Fed to assess the economic situation before making further decisions about interest rates.
It is still too early to say the implications of the Fed’s pause. However, it is a sign that the Fed is taking the risk of a recession seriously.
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