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May 5, 2023 • 11 Min Read

Looks Like a Pause

The Federal Reserve approved its 10th interest rate increase in just over a year, raising the Fed funds rate by 0.25 percentage points to a target range of 5%-5.25%.

Many interpreted the Fed's comments as signaling a potential pause in the tightening cycle, mainly due to the removal of a sentence in the post-meeting statement. The statement no longer mentioned that "the Committee anticipates that some additional policy firming may be appropriate" to achieve the Fed's 2% inflation goal.

This change in language suggested that the central bank might be considering a p...

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