This Week In The Economy: Federal Reserve Plans To Keep Rates Higher For Longer, US Housing Mkt Activity Struggles, Global Monetary Policy Divergence

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

Fed Pauses Rate Hikes, Plans To Keep Borrowing Costs Higher For Longer

The Federal Reserve’s Federal Open Market Committee (FOMC) met this week and in its target federal funds rate but indicated that the central bank will keep interest rates high for some time in order to bring down the inflation rate.

The rate of price increases remains elevated the committee said in its statement, even as “recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have slowed in recent…