Divided US Fed expected to pause interest rate hikeAFP, WASHINGTONThe US Federal Reserve is widely expected to pause its campaign of interest rate increases on Wednesday to give policymakers more time to assess the economic affect of existing hikes and recent banking stresses. The Fed has raised its benchmark lending rate by 5 percentage points since March last year, lifting it to 5.00 to 5.25 percent. While most major banks predict a pause, there are still some notable outliers who expect the Fed to hike rates by another quarter of a percentage point. “We are maintaining our call for a 25bp [basis points] rate hike next week — though admittedly it is a close call,” Citigroup Inc economists wrote in an investor note. This would mean the Fed could leave the door open for an additional rate hike if needed, possibly as early as next month, analysts said.
