The Federal Reserve has stopped stopping interest rate discounts at the present time

Use rates will remain higher for a longer period, as the Federal Reserve stops more cuts in interest rates to give the inflation space to drop closer to the target rate by 2 %.

Federal Reserve Interest rates retained 4.5 % to 4.75 %Pointing from strong economic indicators that gave the central bank more waiting. The Federal Reserve Chairman, Jerome Powell, said in A. press conference On Wednesday that the Federal Reserve intends to remain cautious about additional price cuts as long as the labor market is still strong and the prices are still climbing.

Powell said: “Over our previous three meetings, we have reduced the rate of our policy with a full percentage of its peak,” Powell said. “Re -calibration of our political position was appropriate in light of progress in inflation and balance in the labor market. With our political position much less than it was and the remaining economy is strong, we do not need to be in a hurry to control our political position.”

GDP grown (GDP) in Annual average 2.3 % In the fourth quarter of 2024, a little less than the expected 2.6 % growth rate. In December, annual inflation It increased to 2.9 %It increases modestly higher than the annual inflation rate by 2.7 % From the previous monthAccording to the consumer price index (CPI) It was issued by the work statistics office (BLS). The labor market is stable, unemployment is 4.1 % in December.

“The country’s economy is still flexible against long -term economic setbacks, which means that the Federal Reserve Bank is not imminent to continue price discounts,” said Corelukk’s chief economist in Corelujik. “With economic activity is expected to remain strong and continue to spread 2 % growth rate, the situation is to further reduce money in the coming months, increasingly persuasive.”

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The mortgage rates may remain high

The interest rates are likely to remain without touching them until the second half of the year, which may delay relief from home buyers, according to David, SVP, to develop institutions’ businesses in Voxtur Analytics.

“The interest rate discounts (unexpected) until the second half of the year,” Super said. “This keeps the housing economy in a long period of distress, with the ability to afford costs at the lowest point in memory. Independent mortgage banks will continue to control the mortgage market because of the ability to provide more creative ways to buy homes. Surprise if mortgage rates decrease to 6 % in 2025. ”

One bright point is that the next president Donald Trump The administration can stimulate more fundamental economic growth, and therefore, the higher income, which gives Americans more purchasing power. Moreover, it is expected that the low family tax rates will enhance the available family income even if the entry does not rise, according to what he said RealTor.com housing forecasts.

Besides those scenarios, HEPP said that home builders continue to add more new homes to provide them and offer price purchases on the new construction, while maintaining these strong sales.

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What are the highest rates of your wallet?

President Donald Trump He said in a speech To the economic leaders of the World Economic Forum in Davos, Switzerland earlier this month, it “will demand interest rates immediately.” Powell refused to comment on the speech, but said that the Trump administration had not contacted him.

“With the development of the economy, we will modify our position on politics in a way that better enhances the maximum goals of our work and price stability,” said Powell. “If the economy remains strong and the inflation does not continue to move in a sustainable manner about 2 %, we can maintain policy control for a longer period.”

Consumers who may have expected a policy of reducing the most aggressive prices in 2025 will have to wait longer to alleviate the high borrowing costs of conversation during the increase in the rate implemented by the Federal Reserve in recent years to combat inflation.

“While inflation fears have fallen significantly, they are still in place,” said Michel Raniri, Vice President and President of the United States and Consulting in Troneon. “As a result, it is quite likely that there will be lower price cuts over the next year than it was expected just a few months ago. Consumers must continue to monitor their credit scores and credit reports to ensure that they are in the best possible position to work when the rates decrease.”

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