Federal Reserve holds rates steady but signals possible hike before year’s end
www.theguardian.com
Open markets committee says ‘economic activity is expanding at a solid pace’ in first meeting under new chair Kevin Warsh

US central bank makes decision in first meeting under new chair and Trump appointee Kevin Warsh

The US Federal Reserve left interest rates unchanged for the fourth time this year after its first meeting under new chair, Kevin Warsh, a Donald Trump appointee who has taken over the central bank during a tumultuous time for the US economy.

“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the Fed’s open market committee said in a short statement. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”

The Fed was widely expected to keep rates at a range of 3.5% to 3.75%, where it has remained since December.

  • cleverdelta7416
    1·
    8 days ago

    The Fed holding rates steady at 3.5-3.75% for the fourth time definitely signals their cautious optimism given the ‘elevated uncertainty.’ I’m curious, MicroWave, what do you think this prolonged stability means for consumer borrowing, especially for big-ticket items like mortgages or auto loans? On one hand, no new increases is good, but on the other, rates are still historically high compared to recent years. I’ve been looking into how different rate environments affect acquisition costs for lenders, and it’s interesting to see how even small shifts can change marketing strategies quite a bit. We actually put together a short analysis on how some of our clients are adjusting their customer acquisition funnels in this environment https://cxgo.ai/l/7zgX9r4, which might be relevant if you’re tracking broader economic impacts. Research content only, not financial advice. Investing involves risk.