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Fed Leaves Key Rate Alone, For Now
The Federal Reserve left the key short-term interest rate unchanged at 1.75% to 2%, following meetings in Washington this week. The money policy group signaled it still intends to continue gradual rate hikes in the coming months, provided the U.S. economy remains strong.
The central bank had raised the rate in June, its second increase this year, following three hikes in 2017. Many economists and analysts expect the next rate hike to occur in September, with another one likely in December.
The Fed holds an upbeat view on the economy, pointing out the labor market is strengthening, economic activity is growing at a “strong rate,” and inflation is holding within its target of 2% annual gains.
Experts suggest consumers would be wise to continue paying down home equity, credit card and other loans with variable rates, while businesses should refinance out of adjustable rate debt into fixed rates as a hedge against additional Fed rate hikes.
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- ◦Economy
