Pros:
– The pause on Fed rate hikes allows for a stable interest rate environment, reducing uncertainty for businesses and consumers.
– It provides a breathing space for the economy to adjust to any potential inflationary pressures.
– It may support continued economic growth and consumer spending by keeping borrowing costs low.
Cons:
– The pause on Fed rate hikes might hinder the central bank’s ability to respond swiftly to any sudden inflationary spikes.
– It could potentially delay the normalization of interest rates, which might be necessary to prevent overheating in certain sectors of the economy.
– It may lead to lower returns on savings and fixed-income investments for individuals relying on interest income.
September saw a slight increase in price gains, although insufficient to provoke the central bank into raising interest rates during the upcoming week.
