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Ahead of the Fed's Decision, Here's How Rates Have Moved Since 2000

Ahead of the Fed's Decision, Here's How Rates Have Moved Since 2000

Investors are nearly unanimous in expecting the Federal Reserve to keep interest rates on hold Wednesday, in a range of 4.25% to 4.5%.
The chart below shows how the central bank has steered policy since the turn of the century, including through challenges like the global financial crisis and the Covid-19 pandemic. Most recently, the Fed left rates unchanged for a third consecutive time on May 7:

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Will the Fed Cut Interest Rates Soon? One Official Thinks So.
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Federal Reserve Gov. Christopher Waller told CNBC that the Fed could cut interest rates as early as its next meeting. Waller said he didn't anticipate a spike in inflation from tariffs, and an interest rate cut at the next meeting could help stabilize the labor market. President Donald Trump has been critical of the Federal Reserve for not cutting rates, putting pressure on Chair Jerome Powell to the Federal Reserve will cut interest rates more quickly than investors think. Federal Reserve Gov. Christopher Waller told CNBC on Friday that he didn't believe inflation would rise significantly under President Donald Trump's tariffs on U.S. trading partners. Waller said the Fed could cut its key federal funds rate as early as its next meeting in late July. Fed officials have hesitated to cut the fed funds rate from higher-than-usual levels so far this year. They say they're waiting to see if retailers passing along the cost of Trump's tariffs to customers will reignite inflation. However, Waller pointed to lower-than-expected inflation data and other positive trends in economic growth such as a steady unemployment rate. 'I think we have room to bring [the fed funds rate] down, and then we can see what happens with inflation,' Waller said. Earlier this week, the Federal Reserve's policy committee held its influential interest rate at the same level it's been at since December. None of the 12 voters, including Waller, supported a cut. Projections released Wednesday indicated Fed officials may be split on what comes next. More than one-third of the committee forecast no rate cuts this year, while a similar number of members anticipate they'll cut two or more times. Three more Fed officials believed they wouldn't cut rates at all this year compared to the last time the committee published projections. Most investors believe the Federal Reserve will continue to hold interest rates at their current level next month. The CME FedWatch Tool, which projects the direction of interest rates based on trading of Fed funds futures, indicates investors are pricing in only a 15% chance the Fed will cut rates when it meets on July 30. Read the original article on Investopedia Sign in to access your portfolio

The 20 Most American-Made Cars of 2025
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Trump's housing director rips the Fed, says the slow pace of rate cuts is fueling America's home-inventory problem
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The Fed kept interest rates unchanged again this week, sparking criticism from the Trump administration. The head of the FHFA argues that high rates have worsened the housing crisis. High rates have created a "lock-in" effect that's limited inventory of homes for sale, experts say. Federal Reserve Chairman Jerome Powell's decision to keep rates unchanged earlier this week on Wednesday was widely expected by the market, but it was bashed by the president and his administration. In addition to Donald Trump, the critics of the latest Fed decision include Bill Pulte, the director of the Federal Housing Finance Agency and chairman of Fannie Mae and Freddie Mac. Many naysayers argue inflation has come down enough for the Fed to cut rates, but Pulte takes another issue: he believes sustained high rates are kneecapping America's housing market and exacerbating the affordability crisis. On Wednesday, prior to the Fed meeting, Pulte posted on X that Powell needed to "lower interest rates today," or immediately resign, arguing that Fannie Mae and Freddie Mac could help more Americans afford a house if rates came down. After the decision to hold rates steady, Pulte shared a series of posts on X further bashing Powell, calling him "a main reason for the Housing Supply Crisis in this country" and criticizing him for hurting the mortgage market. As he's done in the past, President Donald Trump also ripped into the Fed's decision on Truth Social, referencing Pulte's statements and calling for Powell to lower rates to 2.5%. The president has repeatedly clashed with Powell, blaming him for holding the stock market back, and even threatening to fire him. Powell's reasoning behind staying in wait-and-see mode is that the Fed is monitoring the impacts of tariffs on inflation and wants to see more evidence that inflation has cooled for good. Pulte's argument is referring to the "lock-in" effect in the housing market, which some housing experts argue has exacerbated supply issues by keeping current owners from selling their homes to avoid having to refinance a new purchase as a higher rate than their existing mortgage. The 30-year mortgage rate rose from historically low levels under 3% during the pandemic to around 7% today. Some housing experts may agree with Pulte's assessment that high rates are hurting the market. Lawrence Yun, chief economist at the National Association of Realtors, sees mortgage rates as the "magic bullet" that'll alleviate the housing crisis. "Part of the delay in recovery is because the Federal Reserve has changed its outlook and appears to be on pause for a longer period," Yun said during a NAR economic forum earlier this month. Others are optimistic that the housing market will improve this year. The Fed is still on track for two cuts in 2025, and Nadia Evangelou, senior economist at NAR, sees a path for mortgage rates to decline to 6.4% to 6.5% by year-end. In some markets across the country, buyers are gaining the upper hand as home price appreciation slows and increases affordability. "We are at a bit of a turning point with mortgage rates," Evangelou told Business Insider. "We expect affordability to be better and for rates to ease, but we don't know to what extent. When mortgage rates are at 6.7% or lower, we typically see more activity." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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