Federal reserve policy maker Announced He was stabilizing the Federal Fund rate after a meeting of the Federal Open Market Committee (FOMC) on Wednesday. The target range remains unchanged from 4.25% to 4.5%.
The last time the FOMC deduction rate was in its December meeting, when it reduced the target limit by 25 basis points or 0.25%.
The federal amount of money is borrowed rates that banks charge to each other for loans. A low rate credit card and individual debt wave for the cost of low borrowing, although banks personally choose how to respond to the rate change. average Credit card interest rate Currently about 21%, whereas Car credit rate There are about 6%for new vehicles.
Federal Reserve President Jerome Powell said News conference After the FOMC meeting that inflation that was at the annual rate 2.4% in MarchStill was above its 2% target and Fed was taking the “Waiting and see” approach for its monetary policy adjustment.
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Pavel said at the news conference, “That’s all we don’t know, I think, and we are in a good position to wait and see.” “We don’t have to be in a hurry. The economy is flexible and is doing quite well.”
Federal Reserve Chair Jerome Powell. Photo by Andrew Harnik/Getty Image
Industry experts are not surprised. Ed Yardni, Head of Yardni Research Consultancy, Told NBC News The best thing to fed was to wait and see if there is a problem below inflation or unemployment line.
“The evidence so far is that, for now, it is likely to exceed the problem of cost compared to the problem of a labor market,” Yardeni explained the outlet.
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Last month, President Donald Trump did one 10% tariff As high as all business partners and a tariff 145% Which can affect consumer prices on China.
Powell said at the news conference that the tariff was “a great deal of uncertainty” about the policies and said that Fed would carefully monitor the effects of tariffs on inflation and unemployment.
The next meeting is on 17 and 18 JuneAnd experts are already expecting the fed to keep the rates stable. Barclays estimates that the Fed will maintain rates in June and cut its first rate in July, while Morgan Stanley does not expect any rate cut this year, per, copy, copy, copy, copy, copy USA Today,
What does Fed’s decision for mortgage rates mean?
Melissa elbowWilliam Ravis Horticulture Regional Vice President, told entrepreneur In an email that she predicts hostage rates this week as Fed decided to keep the rates stable.
Kohan said, “This week the mortgage rates will fall slightly as Bond has made the Fed’s decision alone happy.”
Kohan also said that May would be “a very telling month” because Fed gets a better idea of the impact of tariffs on the economy.
“Now, it is back to look at the data and of course, to see where the tariff talks end,” Kohan said.
