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With just a few days to go until the Federal Reserve’s next interest rate decision, US policymakers are sitting between a rock and a hard place.
The recent banking sector meltdown, triggered partially by Silicon Valley Bank crumbling under the weight of higher interest rates, has led some economists and analysts to call for a moratorium on rate hikes until the industry sorts itself out.
At the same time, inflation remains well above the central bank’s goal of 2%, economic data continues to show labor market strength and consumer spending resilience, and Fed officials have signaled their intent to tighten monetary policy aggressively until price hikes…