Fed Leaves Rates Unchanged

The Federal Reserve once again decided to hold interest rates steady. Despite the Fed’s inaction, there are still opportunities to maximize the interest earned on savings or reduce debt costs, Jeanne Sahadi reported for CNN.

The Fed is still considering two quarter-point rate cuts this year.

Given the Trump administration’s unpredictable tariff policies and its strained relations with the US’ closest allies, analysts have lowered their US growth forecasts.

The Fed followed suit, noting that it expects weaker growth and higher inflation than previously assumed. It also acknowledged “high uncertainty” surrounding the effects of the White House’s actions on the economy.

The Fed is still considering two quarter-point rate cuts this year.

“While the idea of interest rates coming down is appealing to many consumers and businesses, the reason for lower interest rates is very important. We want interest rates to decline because inflation declines, not because of economic weakness,” said Greg McBride, chief financial analyst at Bankrate, in an email.

"So be careful what you wish for.”