The first interest rate decision which came on 29 January 2025 has stated to keep the interest rate as steady and the decision has been set to pause. There has been no change made to the Interest Rate. The Central Bank is expected to hold the rates steady despite the Presidents Tradition of providing a cut in the rates. The US Interest Rate Changes In 2025 have been ranged between 4.25% to 4.5% and the policy makers are to maintain the rates as they assess the inflation and the impact of the economic policies. For more detailed information about the Interest Rate Changes, you shall have a look at the given post.
US Interest Rate Changes In 2025
The US Federal Meeting after Trump’s appointment has been conducted on 29 January 2025 and the Federal Reserve is set to announce their first policy decision and it is expected that there will be unchanged federal fund rates which shall be between 4.25% to 4.5% range. This has been the Central Bank’s decision since Donald Trump was appointed as 47th US President on 20th January 2025. In December 2024, the Federal Interest Rate cut was by 25 basis points which has followed the three consecutive reductions ever since September 2024. Inflation is about 2% and the officials are to adopt the approach known as wait and watch.
The borrowers who have been waiting for more financial relief from the Federal Reserve will have to wait as the Central Bank has hit a pause button on the additional rate cuts as on 29 January 2025. Most of the economists have predicted that the Fed shall hold the cut as of their 19 March meeting and it has been stated that the next cut shall be only after the 7 May meeting. In December 2024, it was known that fewer cuts shall be there in 2025 than were expected in US Interest Rate Changes In 2025. The Economists say that it’s likely that the Fed wants to see a wait and see approach towards the policies of Trump. It has been further looked very carefully at the data and it is above the polices.
When Will The Fed Make The Next Rate Decision?
The Federal Reserve has announced the decision which was followed by the Press Conference with Fed Chair Jerome Powell.
How Will Interest Rate Pause Impact Money?
The Fed Cuts has taken a reduction to the benchmark at least 3 times in the last year. This has been followed with 2 rate cuts of 0.25% out of which one was in November and the other has been in December meeting.
If there is any brighter side, it is for the savers as they will be able to find solid rates on the savings accounts with high yield and they have also declined as Fed head began trimming the benchmark rate last year.
When Will Mortgage Rates Come Down?
It has been a disappointment for the house hunters as there have been high interest rates. The average 30 year interest rate has been near 7%.
The mortgage rates haven’t declined because the home loans are based on a number of factors.
Will Interest Rates Go Down?
It has been known that under Trump’s Administration, a decision was taken to lower the interest rates immediately but it could not affect the Fed’s decision. The rates are only set by the FOMC which has 12 members in it.
FAQs On US Interest Rate Changes In 2025
The meeting was held on 29 January 2025.
It has been decided to put a hold on the interest rate cuts.
No, the rates will not go down any further till it is decided by the FED.