The daily business briefing: June 15, 2023

The Fed pauses interest rate hikes but signals more to come, E.U. antitrust regulators call for breaking up Google's ad business, and more

Jerome Powell
(Image credit: Drew Angerer/Getty Images)

1. Fed pauses interest rate hikes, for now

The Federal Reserve on Wednesday paused its aggressive campaign to raise interest rates — but indicated it's likely to raise rates two more times this year to continue fighting high inflation. The decision leaves the Fed's benchmark short-term lending rate at 5.1%, its highest level in 16 years. The central bank's leaders said the pause will give them time to determine how the higher borrowing costs have affected the economy. The Fed hiked rates at its last 10 meetings. Data have shown that the economy remains stronger than expected. Inflation has fallen steadily, meanwhile, but not as sharply as hoped, and remains near 5%, excluding volatile food and energy costs, far above the Fed's 2% target.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.