Each interest rate hike in the previous two years was accompanied by a hint that the Federal Reserve would continue to raise borrowing costs, but at the policy meeting, the Federal Reserve said that any additional rate hike would "depend on [economic] performance".
Now, with three interest rate hikes completed in 2018 and another one expected after the December 18-19 policy meeting, the Federal Reserve may also be ready to call a halt to the rate hike cycle. The Federal Reserve's uneasy pace of interest rate hike in this interest rate hike cycle is remarkable.
Although the Fed had hoped that the benchmark interest rate would return to its "normal" level when it began its tightening cycle three years ago, it might end up at about half of its 2006 level, far below the average level from the 1950s to 2007. The Federal Reserve has raised interest rates eight times since 2015.
But before it became clearer, analysts, investors and Fed officials seemed to agree that Fed Chairman Powell wanted to react as freely as possible.
"Financial markets have made it clear that things look a little worse. China looks weaker, so does Europe, and Britain looks more risky to withdraw from Europe, "said William English, a professor of economics at Yale University and former head of Monetary Affairs at the Federal Reserve." They are considering these situations. "
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