It is important to remember that last year, the Fed increased rates by 400 basis points over a period of 10 months, starting in March. This pace of rate hikes has not been seen in the business world since the late 70s or early 80s, and the Fed is aware that continuing at such a fast pace could harm the economy. Therefore, they may need to pause their rate hikes, despite positive consumer spending and economic data, due to the number and intensity of hikes last year. It is crucial for the Fed to reverse their course carefully without causing any economic damage.
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