Fed Policymakers Put Interest Rate Cuts on Hold Again. You Can Blame Tariffs

As expected, interest rates today have not bent today. You can blame the tariffs.

Today at the end of the May 6-7 meeting Fed voted to hold prices steady for a consistent third time.

Fed President Jerome Powell remains patient to watch the labor market conditions and inflation pressure before making any incision. Despite the pressure from the White House, there is many “uncertainty” to “economic outlook” to reduce debt interest.

Still marked the Fed “Higher unemployment and higher inflation risks. “Economists are becoming more and more anxious tariffs It will reveal a double blow to steep consumption price and slowdown. US households are already Spend costs separate fear of a recessionAnd investors reduce losses in the stock market.

Fed, although he has three times last year, but to finance, remove a car, it is still expensive tendon and pay credit card debt. While some experts are still expending to reduce debt costs in the end, the interest rate will depend on the business market, inflationary pressure and other political and financial development.

Why is Federian’s interests stable?

The Central Bank of the United States meets the economy’s health and monitors US banks in a monthly a year to determine money policy at a night to lend or borrow money. Its official “mandate” is to balance price stability and maximum employment.

Financial experts and market viewers predict that Fed will increase or reduce interest rates based on official economic data inflation and Work market. The bottom, Fed, Time by Trump management holds interest rates to watch how these key indicators affect these key indicators and how other events affect.

Which side depends on what sides of the Fed’s monetary policy, mandate, inflation or employment is far from the target Matthew MartinHigh US economist with Oxford economy.

Some economists will continue to work outside this year by the end of this year, “wait and see” the position will continue until the end of this year, others are waiting for this summer.

In general, when inflation is high and the economy is in early 2022, as fed, the benchmark increases the interest rate to reduce feeding and reduce money supply. If unemployment is high, the economy reduces the benchmark to become less expensive to reduce financial pressure on consumers and get large ticket items to consumers of banks and get large ticket items through finance and credit.

The “soft descent” statement belongs to the fed’s balancing action. According to those who work in the market, the economy should not be very hot or very cold – it is expected to be right, like porridge in Goldilocks.

What about the risks of recession and tariff?

There are many warning signs of the economic crisis: reducing consumer confidence in GDP, increasing the withdrawal. Although the technical recession is not yet called, the markets are waiting for sharply slowdown in economic activity in the coming months.

Great signs for the economy are tariffs. Tariffs increase the price of goods for internal importers, then passed to consumers.

“Tariffs create a complex situation for feders, because there is a risk of inflation, but there is a risk of falling for growth and labor market.”

When inflation goes, the Fed will keep interest rates at a higher level. However, if the higher tariffs, decrease and cost cutting are combined, the Fed may lower the rates to stimulate growth. There is a risk.

“If the officers are too late, they are the risk of being ‘behind it’ and [causing] A more severe landing, “said Martin.

The Fed is likely to have a great impact on the markets, as the interest rates are caught. Any speech about risk or uncertainty always says investors and reacts a chain in the economy. Not surprisingly, there is extensive concern over employment, taxAbout everything that affects our prices, social programs and financial livelihoods.

How does interest rate change affect your financial situation?

Think of a situation organized by financial institutions and banks an orchestra, the conductor, which is a carrying conductor, directing the markets and manages the money supply. Fed does not control the percentage of our duty Credit cards and mortgageIts policy has a domino effect on the daily consumer.

Percentage, credit or credit card is your payment to borrow money to borrow money. When the Central Bank “Maestro” increases interest rates, many banks are tend to follow. This may owe more expensive (22% Apr 22% compared to 17%), but can cause it The higher deposit product (APY 2% of 5%).

When the proportions of the Fed decrease, banks also tend to throw interest rates. Cheap debt costs encourage investment and debt pay is slightly less difficult, but we will not get anything high Give our deposits.

As a result, the decisions of the Fed’s interest rates affect us how much we earn from us Savings accountsHow much do we owe to our debt and pay monthly mortgage. Here is a degree break Credit Card APRS, Mortgage rates and deposit rates.

🏦 Savings rates

Savings prices are changeable and then moves in Lockstep by the ratio of federal funds after reducing more rates this year. Although each bank sets different rates, we cannot see a significant drop in prices High-income savings accounts or Certificates of Depositsfor at least the time. This gives you more time to maximize your earnings, when you lock in high CD ratio or still around high savings rates.

– Kelly ErnstCNET MONEY EDITOR

🏦 Credit Card APR

Continuous catching the sensitivity of federal funds can cause credit card issuers to protect the annual interest rate on your unpaid balance every month. Some credit card APRS has been reduced slightly after the rate of the Fed ratio last year, but still high. However, each issuer has different rules for the change of APRs. Try to do the high-interest debt, try to do more than a minimum payment of your balance or at least every month.

– Tiffany connectorsCNET MONEY EDITOR

🏦 Mortgage prices

Fed’s decisions, in turn, affect the debt costs and financial conditions affecting the housing market Home loan ratesAlthough it is not a connection one by one. When Fed Federation, Federation rates are continuously, mortgage prices may vary in response to new economic information affecting the bond market and long-term treasury products. It would significantly reduce a number of ratios for a significant economic crisis, a decline and mortgage prices stretching in treasure productivity.

– Katherine wattCNET money apartment correspondent

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