A majority of economists anticipate the Federal Reserve will allow for one more interest rate hike this year and maintain higher rates longer than previously expected 

A Bloomberg survey indicates that economists expect the Federal Open Market Committee (FOMC) to keep rates steady in the range of 5.25% to 5.5% during its September meeting 

While FOMC may project another rate increase in their quarterly economic projections, survey respondents do not believe the Fed will actually implement this increase 

Federal Reserve Chairman Jerome Powell has hinted that the Fed might postpone a rate increase in September to assess the broader economic impact of 11 previous rate hikes 

Powell expressed concern about persistently high inflation, suggesting that additional rate increases might be necessary to address it 

Over the past year, policymakers have raised interest rates rapidly, with 11 rate hikes aimed at curbing inflation and cooling the economy 

Higher interest rates typically result in increased costs for consumer and business loans, leading to economic slowdown as spending is reduced 

These rate hikes have already caused the average rate on 30-year mortgages to exceed 7%, marking the highest level in years 

Borrowing costs for various loans, including home equity lines, auto loans, and credit cards, have also risen significantly 

Despite the rate hikes, the economy has remained resilient, with continued job growth, consumer spending, and inflation acceleration 

Inflation, although down from its peak, still remains significantly above the Federal Reserve's 2% target rate, at more than double the pre-pandemic average