Federal Reserve policymakers voted Wednesday to keep interest rates unchanged again as inflation in the U.S. remains notably higher than their 2% target.
The Federal Reserve on Wednesday held interest rates steady for the seventh straight time and scaled back the outlook for rate reductions later this year as high inflation lingers. New quarterly economic projections laid out after the meeting show that a majority of Fed officials who participated expect rates to fall to just 5.1% by the end of 2024, suggesting there will only be one quarter-point rate cut this year – a sharp reversal from the three they had predicted in March.
Hiking interest rates tends to create higher rates on consumer and business loans, which then slows the economy by forcing employers to cut back on spending. Higher rates helped to push the average rate on 30-year mortgages above 8% for the first time in decades last year. Borrowing costs for everything from home equity lines of credit, auto loans and credit cards have also spiked.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Federal Reserve holds interest rates steady — here's what that means for your moneyThe Federal Reserve will keep rates where they are, for now — here’s what that means for your credit card, mortgage rate, auto loan and savings account.
Read more »
European markets open higher ahead of Fed decision, U.S. inflation dataEuropean stocks opened higher Wednesday ahead of the latest U.S. Federal Reserve decision and inflation reading.
Read more »
Federal Reserve minutes indicate worries over lack of progress on inflationThe Federal Reserve on Wednesday released minutes from its April 30-May 1 policy meeting.
Read more »
Federal Reserve minutes indicate worries over lack of progress on inflationThe Federal Reserve on Wednesday released minutes from its April 30-May 1 policy meeting.
Read more »
Canadian Dollar holds steady against Greenback ahead of US CPI and Fed decision super WednesdayThe Canadian Dollar (CAD) is holding flat against the Greenback to kick off another trading week as momentum in the CAD space remains thin.
Read more »
Federal Reserve interest rate decision for June 2024: Rates unchanged amid cooling inflationRob Wile is a breaking business news reporter for NBC News Digital.
Read more »