Your initial fear about the Fed cutting interest rates might be that they see the economy is inworse shape than the public realizes. The Governors of the Federal Reserve can't openly say they see significant weakness, or they risk sparking panic and accelerating or deepening a recession. Look ...
After cutting rates three straight times in 2024, the Fed is now trying to ease its monetary policy and aiming for a neutral rate in 2025. On this "IBD Explains," IBD News Editor Ed Carson and Meredith Heyman discuss finding the neutral rate and what it
If there's a silver lining, it's for savers given that somehigh-interest savings accounts, certificates of deposit and other savings vehicles now offer interest rates of 5% or more. If the Fed delays cutting rates, it's likely savers will be able find favorable rates for...
"The Fed is being very cautious as it navigates the potential for future rate cuts," noted LendingTree Senior Economist Jacob Channel in an email, prior to the Fed's meeting. "While it doesn't want to leave rates high forever, it also doesn't want to cut them prematurely and risk infl...
ISSUE131|September3,2024|6:40PMEDT ’’’V’’’ ’’’ ISTHEFEDBEHINDTHECURVE? JustasUSinflationconcernsmovedintotherearview,thelabormarketstartedsendingworryingsignals,withtheJulyjobsreporttriggeringtheSahmrule,raisingthequestionofwhethertheFedisbehindthecurveincuttingratesandtheriskofrecession.Formerregio...
According to his findings, the trend could foreshadow the Fed bending to the markets in the early days of Trump’s second term. “It’s possible that if President Trump starts hammering the Fed that rates are too high, markets might start revising the expectations about future rates,” ...
Beginning in September 2024, the Fed engaged ina rate-cutting cyclethat took a full percentage point off the funds rate. The benchmark sets what banks charge each other for short-term lending but historically has influenced a host of other rates for things like car loans, ...
SFC Markets and Finance: When will the Fed and ECB start cutting rates? Brian Coulton: So we think the Fed is going to be probably on hold until June or July of this year. So, that's quite a different view to what's priced into financial markets, but that's our view that it will...
But a pause in early 2025 means that consumers can't expect additional near-term relief on borrowing costs, experts say. "Anyone hoping for the Fed to ride in as the cavalry and rescue you from high interest rates anytime soon is going to be really disappointed," said Matt Schulz, ...
But Republicans say not so fast.It’ll take time to see whether the Fed’s approach worked to try to tame inflation without causing a recession, and one of the big reasons rates are coming down is because of the Fed’s concerns about how the job market has shown signs of slowing...