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The Fed Cut Rates. Will It Help the Housing Market?
The Federal Reserve reduced the benchmark rate to 4.00%-4.25%, signaling two more cuts this year to support economic growth and reduce inflation from 2.9%, officials said.
- On Wednesday, the U.S. Federal Reserve lowered the federal funds rate to between 4.00%-4.25%, enacting its first cut in nine months as officials signaled more reductions likely.
- After a long tightening cycle that ran from March 2022 to July 2023, policymakers moved to curb inflation that had surged, fearing prolonged high rates might stall economic growth.
- Markets reacted unevenly, with rapid ETF inflows and crypto swings: nearly $750 million entered financial-sector ETFs, while Bitcoin surged then plunged, triggering over $1 billion in liquidations, The Kobeissi Letter noted.
- For households, credit costs and savings returns reacted as mortgage rates sat at 6.26% last week, with some CDs and online savings accounts still offering 4%, but Tumin warned, `Banks can make rate changes very fast`.
- FOMC projections show a gradual easing path that includes two more cuts in 2025, one in 2026, and inflation falling to 2.6% by the end of 2026 with upcoming October and December meetings targeting rates between 3.25%-3.5%.
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17 Articles
17 Articles
Hanford Sentinel+2 Reposted by 2 other sources
How the Fed impacts stocks, crypto and other investments
Higher interest rates played out on stocks, cryptocurrency and commodities such as oil over the past few years. But now that the Federal Reserve has been lowering short-term rates, what can investors expect from here, and how long will the…
Why Rate Cuts Could Benefit an Already Booming ETF Industry
The Federal Reserve’s recent interest-rate cut may give an extra boost to the already booming ETF industry. Investors had been anticipating the Fed’s decision for some time, but analysts said certain sectors and strategies stand to gain from lower rates. One area to watch is the $7.4 trillion money market fund industry, which could become less attractive to investors if interest rates continue to drop through the rest of this year. A more risk-o…
Coverage Details
Total News Sources17
Leaning Left3Leaning Right1Center8Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 25%
C 67%
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