The Federal Reserve will likely keep its key short-term interest rate unchanged on Wednesday, despite weeks of harsh criticism and demands from President Donald Trump that the Fed reduce borrowing costs.
President Donald Trump slammed Federal Reserve Chair Jerome Powell on Thursday after Powell signaled that the Fed will keep its key interest rate unchanged while it seeks “greater clarity” on the impact of Trump’s policies.
As we move into the spring of 2025, the Boston housing market is facing some economic uncertainties that are shaking consumer confidence. But don’t expect mortgage rates to budge too much in April and May.
Fed Chair Jerome Powell’s focus on the potential for more inflation suggests that the central bank will likely keep its benchmark interest rate unchanged at about 4.3 percent in the coming months.
While the Federal Reserve held fast despite jitters that have gripped the national economy in recent weeks, local bankers are remaining optimistic about the potential for lower interest rates this year.
When Federal Reserve officials last met, hiring was solid. The economy had just grown at a solid pace in last year’s final quarter. And inflation had fallen sharply. What a difference seven weeks makes.
Austan Goolsbee, president of the Fed’s Chicago branch, said if tariffs don’t worsen inflation, rate cuts could resume.
The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue.
The Federal Reserve is nearly certain to keep its key interest rate unchanged at its policy meeting this week, just a few days after President Donald Trump said he would soon demand lower rates.
Residential lenders will have to continue to navigate elevated interest rates in 2025 but competition for customers will not be as fierce, some of the state’s top mortgage professionals predict.
The average long-term U.S. mortgage rate ticked up again this week, starting the first full week of 2025 off at its highest level since July.
Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes.
As expected, the central bank made a quarter-point cut in its benchmark interest rate Wednesday, but signaled fewer cuts in 2025 than previously predicted.
Americans hoping for lower borrowing costs for homes and investments may be disappointed after this week’s Federal Reserve meeting.
Chair Jerome Powell said Thursday that the Federal Reserve will likely cut its key interest rate slowly and deliberately in the coming months, in part because inflation has shown signs of persistence and the Fed’s officials want to see where it heads next.
Between mixed economic signals and president-elect Donald Trump’s statements that he wants greater control over interest rate policy, it’s up in the air what happens next.
The Federal Reserve is hinting that even more interest rates are coming. Watching how this plays out in the local real estate investment market is Jeffrey Myers, head of the research operation in Colliers’ Boston office.
Federal Reserve Chair Jerome Powell signaled Monday that more interest rate cuts are in the pipeline but suggested they would occur at a measured pace intended to support a still-healthy economy.
At the Associated Industries of Massachusetts’ annual outlook event surveying the future of the Massachusetts economy, housing affordability and production were top of mind.
