The Daily Money: Fed expected to raise rates, signal a pause if inflation eases

After a series of aggressive interest rate hikes, the Federal Reserve is expected to approve one more quarter-point increase before signaling a pause.

Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Tue May 2 2023 Bailey Schulz | Money Reporter @bailey_schulz Happy Tuesday, Daily Money readers. It's Bailey Schulz here to bring you the day's top headlines. After a series of aggressive interest rate hikes, the Federal Reserve is expected to approve one more quarter-point increase on Wednesday before signaling a pause. A break from rate increases would be a relief for consumers and businesses struggling with higher borrowing costs and could ease the worries of investors battered by the market-dampening fallout from the 13-month rate hiking campaign. But this may not be the end of rate hikes. The Fed is expected to say it's prepared to raise interest rates further if inflation and the labor market fail to cool down, and officials don't expect rate cuts until next year.  Picture of the Federal Reserve Building Getty Images American Airlines pilots authorized a strike American Airlines pilots say they're prepared to strike if they don't reach a deal with management on a new contract. Members of the Allied Pilots Association, which represents American's pilots, said 96% of the airline's 15,000 pilots participated in an April vote on whether to strike, with more than 99% affirming the possibility of a strike. But a vote won't necessarily lead to a strike. Authorization votes are a fairly routine part of contract negotiations at airlines, and so far neither the union nor American's management are signaling that a work stoppage will actually occur. 📰 More stories you shouldn't miss 📰 • Subaru recalls 4,000 vehicles because of safety issues • JPMorgan CEO Jamie Dimon: 'This part of the crisis is over' after First Republic takeover • What's banned at Disney World? What guests should know before visiting. • FedEx Freight closing and consolidating 29 locations; furloughs planned • Is that Twitter account real? 4 ways to help you spot a fake account. 🍔 Today's Menu 🍔 Cinco de Mayo is just around the corner, and we've got the perfect round-up of food and drink deals for the holiday. Here are just a few of the savings we found: • Applebee's is celebrating spring with $6 cocktails and beer. • El Pollo Loco is offering new and existing Loco Rewards members a free Crunchy Birria Taco with the purchase of any Shredded Beef Birria entrée on Friday. • Sip on $6 Cinco 'Ritas on Cinco de Mayo at On The Border. About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.  Fed likely to raise rates again, signal a pause if inflation eases The Federal Reserve is expected to raise its key interest rate by another quarter point, then signal a long pause - if inflation eases as projected READ MORE Advertisement Don't panic as American Airlines pilots vote yes to strike American Airlines pilots voted in favor of a strike, but that doesn't mean it's going to happen. Here's what travelers need to know. READ MORE Cinco de Mayo deals: Score discounted tacos, margaritas and more Many restaurants offer deals on Cinco de Mayo, which commemorates Mexico's victory over France in the Battle of Puebla in 1862. READ MORE Subaru recalls 4,000 vehicles because of safety issues Subaru is recalling 4,000 2023 Impreza vehicles due to safety concerns. Forest River recalls over 100 vehicles. READ MORE JPMorgan CEO: 'This part of the crisis is over' JPMorgan Chase Bank CEO Jamie Dimon said this part of the banking crisis "is over" after regulators seized First Republic Bank early Monday. READ MORE 14 things banned at Disney World that you may not be aware of Don't pack these items for your next Disney trip. READ MORE FedEx Freight to close 29 locations, more furloughs planned FedEx Freight plans to close the locations later this year. The news comes as FedEx undergoes a significant consolidation throughout the company. READ MORE Is that Twitter account real? 4 ways to help you spot a fake account. Many users are refusing to pay for a little white tick in a blue circle. Here's how to tell if the person you're following is legit. READ MORE Akorn to shut down, recalls human, animal drugs Akorn Pharmaceuticals abruptly shut down in February, and has issued a recall of its human and animal drugs READ MORE Ford Super Duty pickup quality review is unprecedented, engineer says As Ford launches its all-new 2023 Super Duty truck with record orders that will take months to fill, quality details are checked and rechecked. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? 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