You’ll likely pay more to borrow until at least 2025, but now may be the time to lock in higher savings rates.
by Richard Trenholm
c|net
Federal Reserve Chairman Jerome Powell had some sobering words for those anxiously anticipating rate cuts in 2024: “The path forward is uncertain.”
The Fed on Wednesday decided to hold the federal funds rate at a target range of 5.25% to 5.50% for the sixth straight time after three months of hotter-than-expected inflation reports. Inflation currently sits at 3.5% year over year, according to the Consumer Price Index’s April 10 report.
At previous meetings this year, Powell said the committee needed more data to make a decision and stuck to its forecast of three rate cuts “at some point this year.” But on Wednesday, Powell noted that a “lack of progress” on inflation in the first quarter could delay those cuts.