"By making a larger half-point interest rate cut right from the get-go, the Fed is taking out some insurance against being behind the curve again." More important than today's move, McBride and other analysts said, is the aggregate impact on borrowing costs from what is expected to be ...
For now, the majority of economists polled by FactSet are forecasting a rate cut from the Fed at its June 12 meeting. If that occurs, it would mark the first interest rate reduction since March 2020, when the central bank moved to stimulate growth as the pandemic was slamming the economy....
Don’t expect too many details on the rate path from Powell, Russell Investments’ BeiChen Lin says Federal Reserve Chair Jerome Powell likely will not provide too many particulars on when the first rate cut will come, according to BeiChen Lin, investment strategist at Russell Investments. "I t...
or owed money on a credit card, you’ve been impacted by the “prime rate”. If you don’t know what the prime rate is, you’ll definitely want to become familiar prior to taking out a loan or line of credit, as it will impact the current interest rate you would be paying on...
Outside of the emergency rate reductions during Covid, the last time the FOMC cut by half a point was in 2008 during the global financial crisis. The decision lowers the federal funds rate to a range between 4.75%-5%. While the rate sets short-term borrowing costs for banks,it spills ov...
A lower Fed rate would likely lead, over time, to reduced borrowing rates for households and businesses. Some economists now predict that the central bank’s first rate cut won’t come until July or even later. That expectation has fueled speculation on Wall Street that the Fed migh...
Schwarz added that the Fed's rate cut clearly does not affect the adverse supply shock, but it might mitigate the virus-related drop in demand.Noting that the outbreak will require a "multi-faceted" response, the Fed chairman told reporters that the central bank doesn't have all the ...
Schwarz said the newly announced rate cut can be characterized "as primarily an insurance move" against potential downside risks to the economy, while noting that the rate hike last December could be characterized as "precautionary tightening," insuring against risks at that time to "overly robust...
Half-point Fed rate cut expected to come todayMartin Crutsinger
But the upcoming Fed rate cut is a sign that CD rates have likely peaked and APYs will gradually drop. August saw bigger CD rate decreases than all previous months in 2024, according to a NerdWallet analysis. If CDs fit into your short-term savings goals, this is a good time to get ...