US Markets
Monday, September 18th, 2023 1:52 pm EDT
Key Points
- The Federal Reserve is anticipated to refrain from raising interest rates during its upcoming two-day meeting.
- Consumers will continue to experience the consequences of elevated rates and ongoing inflation.
- Let’s examine how the Fed influences your monthly expenditures and savings.
The Federal Reserve is expected to abstain from raising interest rates during its upcoming meeting, despite having raised rates 11 times since last year, marking the fastest pace of tightening since the early 1980s.
While economic data remains mixed, with steady overall growth and signs of cooling inflation, consumers continue to feel the impact of high rates. Credit card rates have reached an all-time high, with an average exceeding 20%, and mortgage rates for 30-year fixed-rate loans remain above 7%, affecting purchasing power. Adjustable-rate mortgages and home equity lines of credit have also seen increases, with the average HELOC rate at a 22-year high. Auto loan rates have risen to 7.46%, the highest in 15 years, impacting car buyers. Federal student loan rates have increased to 5.5%, affecting undergraduate students, and existing borrowers have started accruing interest again.
Some deposit rates at banks have risen, but online rates are significantly higher, with top-yielding accounts paying over 5%. However, if the Fed decides to skip a rate hike at its September meeting, deposit rate increases are expected to slow down.
Read the full article here: https://www.cnbc.com/2023/09/18/the-federal-reserve-may-pause-rate-hikes-what-that-means-for-you.html
