Market expectations are calling for two interest rate cuts before the end of the year. (iStock)
The Federal Reserve announced plans on Wednesday to keep the federal funds rate range at 5.25% to 5.5%, where rates have held steady since last July.
Fed Chair Jerome Powell told reporters that the central bank has gained greater confidence that inflation is moving towards its 2% target rate, indicating that rates were not lowered this time but could soon be. Market expectations are forecasting a 25 basis point rate cut by the central bank’s September meeting. On Wednesday, the Mortgage Bankers Association said they anticipate two rate cuts this year, with the expectation that inflation will continue to moderate.
“The Fed is walking a tightrope regarding the nation’s economy as it seeks to balance the risks of a slowing labor market while ensuring continued disinflation,” CoreLogic…
