Fed Nears End of Rate Hikes But Washington Turmoil May Complicate Further Steps to Curb Inflation

The Fed is close to ending interest rate hikes meant to reduce high inflation, but political turmoil in Washington could make further hikes harder.

Inflation has fallen from a 40-year high though still above the Fed's 2% target. The Fed expects prior hikes to slow the economy further.

Higher rates have already impacted housing and borrowing. Uncontrolled long-term rates have also risen, adding stress.

The Fed's next meeting is before a potential government shutdown. More data on jobs and inflation will come before then.

A shutdown could delay economic reports, but likely wouldn't prevent a Nov/Dec hike. The Fed could use private reports.