Forbes on Nostr: When Will Interest Rates Go Down? Fed Holds Rates At 23-Year High Yet Again ...
When Will Interest Rates Go Down? Fed Holds Rates At 23-Year High Yet Again
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The Federal Reserve announced it will keep interest rates at a 23-year high, maintaining the highest interest rates since 2001. It's the central bank's policy-determining panel's sixth consecutive meeting keeping rates firm. The Fed noted a lack of further progress toward its 2% inflation goal and doesn't anticipate cutting rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Despite sticky inflation and strong economic growth, it is highly improbable the Fed will return to rate increases any time soon. Futures contracts indicate 25 basis points of cuts to a target range of 5% to 5.25% is the most likely scenario by year's end. The Fed most recently indicated it expects rates to settle at 4.6% by the end of 2024, 3.9% by the end of 2025, and 2.6% in the long run. The target federal funds rate impacts the costs of everything from mortgages to government debt and corporate loans. Lower interest rates tend to spark economic growth, while higher rates tend to do the opposite. Stocks have slid and yields have climbed in recent weeks as inflation has been above economist forecasts for the fifth straight month.
#FederalReserve #InterestRates #Inflation #EconomicGrowth
https://www.forbes.com/sites/dereksaul/2024/05/01/when-will-interest-rates-go-down-fed-holds-rates-at-23-year-high-yet-again/
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The Federal Reserve announced it will keep interest rates at a 23-year high, maintaining the highest interest rates since 2001. It's the central bank's policy-determining panel's sixth consecutive meeting keeping rates firm. The Fed noted a lack of further progress toward its 2% inflation goal and doesn't anticipate cutting rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Despite sticky inflation and strong economic growth, it is highly improbable the Fed will return to rate increases any time soon. Futures contracts indicate 25 basis points of cuts to a target range of 5% to 5.25% is the most likely scenario by year's end. The Fed most recently indicated it expects rates to settle at 4.6% by the end of 2024, 3.9% by the end of 2025, and 2.6% in the long run. The target federal funds rate impacts the costs of everything from mortgages to government debt and corporate loans. Lower interest rates tend to spark economic growth, while higher rates tend to do the opposite. Stocks have slid and yields have climbed in recent weeks as inflation has been above economist forecasts for the fifth straight month.
#FederalReserve #InterestRates #Inflation #EconomicGrowth
https://www.forbes.com/sites/dereksaul/2024/05/01/when-will-interest-rates-go-down-fed-holds-rates-at-23-year-high-yet-again/