In a 9-1 vote today, the Federal Reserve decided to maintain the federal funds target range of 2.25% – 2.50%. There was some speculation entering the day that a rate cut was possible, but unlikely. Chairman Powell was unambiguous in his description of the U.S. labor market as “strong” and continues to advocate for a torpid approach to changes in the federal funds rate.
The central bank did manage to leave some room for change however, saying that they will continue to “closely monitor” the economy in light of falling inflation and uncertainties in the market. Trade between the U.S. and China is a major piece of the economic puzzle, and recognizing the volatile potential of a protracted trade battle The Federal Reserve fell short of declaring zero rate cuts the remainder of the year.
Rates have improved in the aftermath of the announcement, and everyone should consider taking advantage. Favorable rates means homebuyers can qualify more easily with more purchasing power, or refinance their mortgages into a lower rate. If you’d like to learn more, contact an HFG Licensed Mortgage Professional near you.