Federal Reserve expected to raise interest rates at a slower pace amid inflation concerns

The Federal Reserve is expected to raise its benchmark interest rate at a slower pace than the previous 15 months as it continues to pursue a 2% rate of inflation. Fed Chair Jerome Powell testified before the House of Representatives and indicated that rate hikes going forward could be fewer and farther between than in recent months. The Fed has been raising its interest rate to douse the hot inflation that took hold amid the recovery from the pandemic in 2021. However, the interest rate hikes risk slowing the economy too much, tipping it into a recession and potentially increasing unemployment.