Hawkish Pause
Recently, the Federal Reserve of the United States decided to pause the raising interest rate which is considered as hawkish pause.
- The term "pause" is used to describe the temporary nature of the decision to stop raising interest rates.
- A hawkish pause is a situation in which a central bank decides to temporarily stop raising interest rates, but makes it clear that they are still committed to fighting inflation and may resume raising rates in the future.
- This could dampen consumer spending, investment and fiscal stimulus, and slow down economic growth.
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