Federal Reserve Nears End of Rate Hikes, But Politics Could Complicate Further Action

The Federal Reserve is close to ending interest rate hikes meant to reduce high inflation, but political chaos in Washington could complicate further hikes.

Investors and economists are skeptical of additional rate hikes this year as inflation falls and the economy cools.

Higher interest rates have already slowed key areas like housing, and market rates beyond Fed control have also risen.

A potential government shutdown in November would delay economic reports, leaving the Fed partly blind to data.

Fed Chair Powell said a shutdown would affect decision making but the Fed could use private reports, and unpredictable politics shouldn't guide rate choices.