Waco, TX (FOX 44) — After a long stretch of high prices this week, the Federal Reserve decided to pause its interest rate hikes.

The Bank of England also decided today to follow suit.

Economist Dr. Ray Perryman says the high inflation rates we’ve been seeing have slowed down alongside job growth to balance the economy.

Dr. Perryman says we’re now in a steady spending period for the reserve’s next decision.

“They want to see the economy slow down but not fall into a recession. So there’s just several things that came together that caused them to stop and pause for a month or so,” said Perryman.

Perryman says job growth has slowed in the last two months so the Federal Reserve decided against another interest rate increase.

With a set interest rate, Dr. Rob Tennant with A&M Central Texas still sees a difference in costs.

“Compared to two years ago the average American is spending approximately $700 more a month now than they were then. Those are real tangible numbers and people are not necessarily making another $700 to $1000 a month than they were two years ago,” said Dr. Tennant.

We asked Perryman if the pause on interest rates will lower current prices.

Perryman says its not a simple answer.

“The higher prices that we have now are probably going to be with us. It’s just are they going to increase it at a 3%, 4%, or a 2% rate. That’s what the Fed Reserve is looking at. Now, there are some prices that are tied to weather conditions and economic situations and global politics,” said Perryman.

Food and gas are two commodities that can still fluctuate outside of the Federal Reserve’s control.

Perryman believes costs and our salaries will eventually balance out.

“As inflation starts coming down, wages have been going up and we’re likely to see that continue for quite some time because we have a labor shortage, so as a result of that, wages are likely to go up, and over time that will balance itself out,” said Perryman.

Even though the Federal Reserve has paused on hiking interest rates, Perryman believes there may be two more slight increases in the future.