UNITED STATES NEWS

A June pause in rate hikes would be a close call for Fed officials, minutes of last meeting show

May 24, 2023, 11:04 AM

WASHINGTON (AP) — Federal Reserve officials were divided earlier this month on whether to pause their interest rate hikes at their upcoming meeting in June, according to the minutes of their May 2-3 meeting.

“Several (policymakers) noted if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary” — Fed parlance for a pause — the minutes from the May 2-3 meeting said.

At the same time, “some” officials said that the persistence of high inflation meant that “additional (rate hikes) would likely be warranted at future meetings.”

Yet in the language used in the minutes, “several” is considered to be more than “some,” suggesting that those favoring a pause may have the upper hand.

In addition, Chair Jerome Powell and the officials closest to him signaled in speeches last week that they were likely to support a pause in rate hikes at their next meeting in mid-June.

The Fed raises its key rate to lift the cost of mortgages, auto loans, credit card borrowing, and business loans. By making borrowing more expensive, the Fed seeks to slow growth and inflation. Fed officials have raised their benchmark rate for 10 straight meetings, to about 5.1%, a 16-year high.

United States News

FILE - White House climate adviser Ali Zaidi attends a speech by President Joe Biden about supply c...

Associated Press

Biden rule aims to reduce methane emissions, targeting US oil and gas industry for global warming

WASHINGTON (AP) — The Biden administration on Saturday issued a final rule aimed at reducing methane emissions, targeting the U.S. oil and natural gas industry for its role in global warming as President Joe Biden seeks to advance his climate legacy. The Environmental Protection Agency said the new rule will sharply reduce methane and other […]

6 hours ago

Associated Press

Trump and DeSantis will hold dueling campaign events in Iowa with the caucuses just six weeks away

DES MOINES, Iowa (AP) — Ron DeSantis plans on Saturday to complete his campaign promise to visit each of Iowa’s 99 counties, a timeworn tactic for presidential candidates hoping to make their mark in the leadoff state over months mingling with voters at the state’s diners, cookouts and Pizza Ranches. But the Florida governor’s moment, […]

9 hours ago

FILE - Supreme Court Justice Sandra Day O'Connor is shown before administering the oath of office t...

Associated Press

Justice Sandra Day O’Connor paved a path for women on the Supreme Court

WASHINGTON (AP) — One fall day in 2010, retired Supreme Court Justice Sandra Day O’Connor slipped into the courtroom where she worked for nearly 25 years to take in an “amazing” sight. The first — and for 12 years, the only — woman on the high court saw three women in black robes among the […]

9 hours ago

Associated Press

US Navy plans to raise jet plane off Hawaii coral reef using inflatable cylinders

HONOLULU (AP) — The U.S. Navy plans to use inflatable cylinders to lift and roll a jet plane off a coral reef in Hawaii before removal from the ocean waters where the aircraft crashed on Nov. 20. Rear Adm. Kevin Lenox, the commander of Carrier Strike Group 3 who is leading the salvage effort, said […]

10 hours ago

Associated Press

Las Vegas police search for suspect after 5 homeless people are shot, killing 2

LAS VEGAS (AP) — Five homeless people were shot in Las Vegas on Friday, two of them fatally, and police were searching for a lone suspect, authorities said. The shooting occurred around 5:30 p.m. near a freeway overpass in the northeastern part of the city, according to Las Vegas Metropolitan Police Department Lt. Mark Lourenco. […]

11 hours ago

Associated Press

Judge rejects calls to halt winter construction work on Willow oil project in Alaska during appeal

JUNEAU, Alaska (AP) — A federal judge in Alaska on Friday rejected requests from environmental groups to halt winter construction work for the massive Willow oil project on Alaska’s North Slope while the groups’ legal fight over the drilling project wages on. U.S. District Court Judge Sharon Gleason just last month upheld the Biden administration’s […]

12 hours ago

Sponsored Articles

(KTAR News Graphic)...

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

...

SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.

...

DAY & NIGHT AIR CONDITIONING, HEATING AND PLUMBING

Importance of AC maintenance after Arizona’s excruciating heat wave

An air conditioning unit in Phoenix is vital to living a comfortable life inside, away from triple-digit heat.

A June pause in rate hikes would be a close call for Fed officials, minutes of last meeting show