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Federal Reserve officials divided on interest rate decision as inflation slows and credit tightens

  • High interest rates are restricting borrowing and economic growth, but inflation remains above target.
  • Officials debate pausing rate hikes or continuing increases at next meeting.
  • Chair Jerome Powell suggests rate hikes and credit tightening may achieve Fed's goals, allowing a potential pause.
  • Economic indicators and inflation will determine if rates stay on hold or increase again.
  • Markets expect rate cuts later this year, but officials say it's too early to determine if cuts are coming.
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