Federal Reserve pauses interest rate hike amid inflation concerns

WASHINGTON (Nexstar) – The Federal Reserve decided not to raise interest rates, which comes as good news for Americans who are looking to make big purchases with loans or credit cards, however, the pause isn't permanent.

This is the first pause in interest rate hikes after 10 consecutive hikes but the Fed expects more interest rate increases in 2023.

“In light of how far we've come in tightening policy...today, we decided to leave our policy interest rate unchanged,” Federal Reserve Chair Jerome Powell said. "I think it allows the economy a little more time to adapt."

The country had a more robust May jobs report than expected and the economy also cooled with inflation falling to four percent -- a sharp drop compared to the nine percent inflation rate the United States saw last June.

"This is all evidence that the president's economic plan is working to lower costs for families, invest in America,” White House Press Secretary Karine Jean Pierre said.

But on Capitol Hill, Republicans like Senator John Thune are not impressed – saying Americans are still struggling.

"Nine out of 10 Americans are worried about higher prices, in fact, it's the number one issue for Democrats and Republicans,” Senator John Thune (R-SD) said.

Powell says more rate hikes are likely, adding that “inflation pressures continue to run high and the process of getting inflation back down to two percent has a long way to go.”

According to Powell, the Federal Reserve will continue to raise interest rates in the future and it's possible the U.S. could see two more rate hikes soon.