Federal Reserve leaves key rate unchanged as it sees risk of inflation, higher unemployment
Many economists and Wall Street investors still expect the Fed will reduce rates two or three times this year.
Interest Rates
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Powell: Fed still sees rate cuts this year; election timing won’t affect decision
The recent pickup in inflation has led some economists to postpone their projections for when the Federal Reserve will begin cutting interest rates.
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U.S. economy grew 2.1% in 2022, but recession fears linger
The latest figures point to a strong but slowing economy that has been tempered by the Federal Reserve’s aggressive efforts to control inflation.
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Homebuilding in central Indiana continues to crater as interest rates rise
Builders in the nine-county Indianapolis area filed only 457 single-family building permits in October, down a whopping 46% from 845 in the same month of 2021.
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Articles
Federal Reserve likely to ignore Trump, keep rates unchanged this week
President Trump and Treasury Secretary Scott Bessent have said that inflation has steadily cooled and high borrowing costs are no longer needed to restrain price increases.
Fed keeps interest rate unchanged, sees slower growth, slightly higher inflation ahead
The Federal Reserve has again kept its interest rate at about 4.3%, as the central bank evaluates the impact of the Trump administration’s policies on the economy.
Economists expect Fed to cut rates twice this year
Fed officials have signaled interest rates may be on hold for some time amid uncertainty about President Donald Trump’s economic policies, particularly on trade.
Powell: Fed to stay on hold amid widespread economic uncertainty
Federal Reserve Chair Jerome Powell said the economy remains mostly healthy despite “elevated uncertainty.”
Inflation rose in January as prices for groceries, housing picked up
Wednesday’s data could strengthen the case for the Federal Reserve to remain in an extended pause mode while the economy is strong and inflation remains elevated.
Powell says Fed ‘well positioned’ for ‘risks and uncertainties’ that lie ahead
The Federal Reserve is prepared to keep its key interest rate unchanged for now as inflation remains elevated and the job market is solid, Chair Jerome Powell said Tuesday.
Federal Reserve holds rates steady, sees inflation as ‘elevated’
The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed.
Federal Reserve expected to stand pat on rates even as Trump demands cuts
Fed officials have clearly signaled they expect to skip a rate hike, at least in January, to evaluate the job market and economy.
Capital One sued by watchdog alleging bank cheated customers out of $2B
The Consumer Financial Protection Bureau said Capital One promoted 360 Savings as an account that provides one of nation’s highest interest rates, but froze its rate at a low level for at least several years, even as rates rose nationally.
U.S. payrolls growth picks up, unemployment rate drops
The U.S. economy in December added the most jobs since March, capping a surprisingly strong year and supporting the case for a pause in Federal Reserve interest-rate cuts.
Average rate on 30-year U.S. mortgages hits highest mark since July
Interest rates have been climbing since the Federal Reserve signaled last month that it expects to cut its benchmark rate just twice this year, down from the four cuts it forecast in September.
Fed cuts its key rate by quarter-point but envisions fewer reductions next year
New quarterly projections suggest that consumers may not enjoy much lower rates next year for mortgages, auto loans, credit cards and other forms of borrowing.
Federal Reserve officials signal cautious path for rate cuts amid still-high inflation
Even if inflation continued declining to the Fed’s 2% target, officials said, “it would likely be appropriate to move gradually” in lowering rates, according to minutes of the November 6-7 meeting.
Powell says Fed will likely cut rates cautiously given persistent inflation pressures
After Powell’s cautious remarks Thursday, traders estimated the likelihood of a Federal Reserve rate cut in December at just below 59%, down from 83% a day earlier.
UPDATE: Fed trims interest rates by quarter-point
The rate cut signals that Fed officials are paying more attention to warnings in the economy, including the slowing job market.
Interest rates have been cut, but mortgage rates are rising
The Fed’s move to start cutting rates has not sent mortgage costs down. Instead, the 30-year fixed-rate mortgage has ticked up for the last five weeks.
Fed’s favored inflation gauge shows cooling price pressures
The ongoing decline in inflation makes it even more likely that the Federal Reserve will cut its key benchmark rate further in the coming months.
Federal Reserve cuts key interest rate by a sizable half-point, signaling end to its inflation fight
The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing.
Federal Reserve set to cut interest rates for first time in 4 years
At issue is how fast the Fed wants to lower interest rates to a point where they’re no longer acting as a brake on the economy—nor as an accelerant. Where that so-called “neutral” level falls isn’t clear.