The Federal Reserve has increased its benchmark interest rate by 0.25% while warning of further hikes to keep inflation under control. This shift to a slower pace of rate hikes comes as inflation appears to have peaked and the economy begins to slow down. The US Dollar fell against major currencies after the Fed Chair, Jay Powell, stated that the US economy would not require more rate hikes to bring inflation down and declared that the "deflationary process has begun". The AUD/USD rallied to an eight-month high following the dovish stance of the Federal Reserve. The USD/JPY fell amid pressure on the Japanese central bank to continue tightening. With uncertainty rising, many economists and investors worry that the Federal Reserve raising interest rates too high for too long could cause a deep recession.