Fed likely to hike interest rates again, then signal a pause in its inflation fight

Fed's Powell may signal end to interest rate hike campaign as inflation cools

Megan Henney / FOXBusiness

 

The Federal Reserve is on track to raise interest rates for the 10th straight time Wednesday, but the end may finally be in sight for the fastest tightening campaign since the 1980s.

The U.S. central bank is widely expected to lift the federal funds rate by a quarter-percentage point at the conclusion of its two-day meeting then hint at a long-awaited pause in rate hikes. 

The move would set the federal funds rate between 5% to 5.25%, further restricting economic activity as the borrowing costs for homes, cars and other items march higher. It would mark the highest rate since 2007. 

Policymakers projected a peak rate of 5.1% during their March meeting. 

But Wall Street is even more focused on Chairman Jerome Powell's press conference at 2:30 p.m. ET for additional clues about what comes next in the Fed's inflation fight. Read more and see video here.