The Federal Reserve announced that it would keep it's discount rate steady at 5.25%, this is the first pause in 17 rate hikes throughout the past two years. This was widely expected since fed fund futures were at about 22 percent going into the decision. Some say that this may not be just a pause but also a ending to the hike cycle. It has been speculated that soon, the Federal Reserve will cut rates in the near future.

The Fed also appeared less concerned about inflation than it has been in recent months. In a statement explaining the decision to pause, the Fed described the potential threat from rising prices in muted terms."Inflation pressures seem likely to moderate over time," the Fed said, "reflecting contained inflation expectations and the cumulative effects of monetary policy actions and other factors restraining aggregate demand."

After the news was released, the markets rallied on the news only to fall just fifteen minutes later. The markets are concerned that the Federal Reserve still overshot and the United States could still experience stagflation. Stagflation is a period with a slow economy coupled with higher inflation.

There is no question that this economy is slowing. The big questions are if Bernanke and Friends are finished the cycle and what their next strategy will be to combat the troubles to come.