The Federal Reserve is considering the possibility of halting the process of raising interest rates at its upcoming September meeting. Reports of moderate inflation, declining consumer spending, and a soft labor market indicate the need for a temporary pause in rate hikes. Economists forecast a softening of core inflation and the likelihood of keeping rates unchanged, and the Federal Reserve may refrain from resuming student loan payments. The Fed’s policy will depend on subsequent data and growth prospects. The overall trend is a slowdown in inflation and a commitment to achieving the target inflation rate of 2% without significant harm to the labor market.
