The Federal Reserve held its ground on interest rates, again deciding not to cut as it continues a battle with inflation that has grown more difficult lately.
The federal funds rate has been at that level since July 2023, when the Fed last hiked and took the range to its highest level in more than two decades.
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the Fed’s statement said.
The U.S. central bank kept its benchmark short-term borrowing rate in a targeted range between 5.25%-5%.
Beyond that the statement was little changed, with economic growth characterized as moving at “a solid pace,” amid “strong” job gains and “low” unemployment.
Lots of doom and gloom in these comments. Were not far off what the average mortgage rates over the last 50 years. We have been spoiled by recent stupid low 2% rates.
@QuaintUnicornGreen2wks2W
Except the average fixer upper is now 4-500k. Most people can't afford $4500/mon for a mortgage. A brand new 3000sqft house in Dallas 1998 was $200k at 12%. You couldn't buy a plot of land for that today.
@Ratified2004Democrat2wks2W
It has been obvious to even the casual observer that the high costs are being driven by corporate price gouging and excessive profiteering by corporations and billionaires under the guise of "inflation".
@KangarooEvaGreen2wks2W
The conglomerates, especially Big Oil, have taken advantage of the post Covid era inflation bump to rake in obscene profits.
What the government calls "green energy investments" are not really investments at all. An investment is supposed to lead to greater productivity, thus allowing for lower interest rates. But billions are being spent on green-energy "investments" that won't yield greater productivity at all. A kilowatt of electricity is a kilowatt of electricity - when ratepayers pay more they're not getting more, it's just being produced differently.
You combine that with student loan forgiveness, billions going out the door in the name of industrial policy, billions more for Ukraine, Israel, etc., and just like that you've got a deficit doubling.
At the end of the day someone will have to buy the trillions of debt that has to be refinanced. In the long run there is no free lunch.
@SpiritedCraneDemocrat2wks2W
Rates are too low. High inflation persists and the Fed is not restrictive.
We know Powell won't raise rates today.
The question is: is intentional?
Trump and Biden have run the debt-to-GDP ratio/percentage to over 100%. In order for the government to manage the interest expense on the debt, either Powell has to lower rates significantly, or high (but controlled) inflation must continue for some time so the debt-to-GDP ratio drops to a manageable level.
I'm betting it's the latter.
Which is extremely bad news for our middle class and youngsters.
The high interest rates aren't a problem for people with high incomes. The poor, the disabled and people on a fixed income like me are being hurt badly by the increased credit card interest. It's impossible to get ahead and there's simply not enough cash left to avoid using credit cards when the cash runs out. At least give us a break on credit cards! Or make exceptions for low and fixed income people. We are drowning.
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
@ISIDEWITH2wks2W
The historical activity of users engaging with this general discussion.
Loading data...
Loading chart...
Loading the political themes of users that engaged with this discussion
Loading data...
