Federal Reserve likely to cut interest rates in September to stimulate economy

From CBS News: 2024-07-30 12:09:50

This month marks the one-year anniversary of the Federal Reserve’s most recent interest rate hike, which pushed rates to their highest point in 23 years. Economists predict the central bank will begin cutting rates and have their next meeting on July 30-31 led by Chair Jerome Powell, who is expected to hint about the future direction. Most likely, a rate cut will be in September. The current federal funds rate is in a range of 5.25% to 5.5%, but could be cut by 0.25 of a percentage point in September as part of a plan to keep inflation in check and ensure maximum employment. Job growth has averaged 177,000 a month, down from the previous year. Experts are hoping for a rate cut of 0.25 of a percentage point, trending mortgage rates closer to 6% by the end of 2024 and reducing credit card APRs. The markets are looking for the Fed to act quickly to alleviate financial burdens on consumers and boost the economy.



Read more at CBS News: The Federal Reserve will make an interest rate decision this week. Here’s what to expect.