The Fed’s Hit Pause

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The Fed’s Hit Pause | https://www.themorganreport.com

After many interest rate hikes, the Federal Reserve has hit pause on increases… for now.

This break from interest rate hikes had been widely expected, coming on the heels of the latest report on consumer prices showing that inflation rose at an annual rate of 4% in May — the lowest annual rate in about two years if you believe what come out of their mouths.

By increasing the federal funds rate for so long, the Fed has made it more expensive for banks to borrow money from one another. That has a trickle-down effect that makes borrowing money more expensive for everyone.

The days of borrowing free money are certainly over.

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