Wall Street thinks the Federal Reserve is almost certainly done cutting interest rates for the time being.
But as inflation fears rattle Wall Street, some economists are beginning to wonder if the Fed went too far by cutting rates as much as it did in such a short period of time.
The central bank is widely expected to leave its key federal funds rate at 2% after a two-day policy meeting next Tuesday and Wednesday. That would be the first time the Fed left rates steady following seven rate cuts since last September.
The fed funds rate is the central bank's key lever to spur economic growth or slow it in an effort to keep prices in check. It is used as a benchmark to set rates paid by consumers on many types of loans, such as adjustable rate mortgages, home equity lines and credit cards, as well as for many types of business loans.
Typically, the Fed lowers rates when it is concerned about the economy slowing and raises rates when it is more worried about inflation.
