Fed Now Likely to Slow Rate Cut Pace in 2025
Americans hoping for lower borrowing costs for homes and investments may be disappointed after this week’s Federal Reserve meeting.
Americans hoping for lower borrowing costs for homes and investments may be disappointed after this week’s Federal Reserve meeting.
Plenty of uncertainty still surrounds this week’s Fed meeting. How much will the policymakers decide to reduce their benchmark rate, now at 5.3 percent? By a traditional quarter-point or by an unusually large half-point?
A top Federal Reserve official warned Wednesday that the Fed needs to cut its key interest rate before the job market weakened further or it would risk moving too late and potentially imperil the economy.
The Fed seems poised to cut interest rates next month, but has been cagey about its plans after that. Aaron Jodka, the Boston-based director of U.S. capital markets research at Colliers is watching for how investors will react.
A rate reduction this fall – the first since the pandemic – would amount to a momentous shift and a potential boost to the economy, but in isolation won’t make much of a difference.