The Fed holds further interest rates. (ISTOCK)
Interest rates will stay longer because the federal preparation system will pause further reductions and provide an inflation room to bring inflation to a 2 % target rate.
Federal preparation system 4.5 % to 4.75 % interest ratesI was promoted to a powerful economic indicator to increase the room for waiting for the central bank. Jerome Powell, chairman of the Federal Reserve Press conference On Wednesday, the Fed will be careful about additional cost reductions as long as the employment market is strong and the price is rising.
“In the previous three -time meeting, the policy rate has been reduced in full point from the peak,” Powell said. “The re -coordination of our policy stance was appropriate in light of inflation's progress and the rebalancing in the labor market. Policy stances are significantly less restricted and remained in the economy. So you don't need to be in a hurry.
Gross domestic production (GDP) grew at an annual rate of 2.3 % in the fourth quarter of 2024, slightly lower than the expected 2.6 % growth rate. Annual inflation in December increased to 2.9 %, and according to the consumer price index (CPI), the annual inflation rate of 2.7 % of the previous month was slightly higher. Released by the Labor Statistics Bureau (BLS). The labor market is stable and the unemployment rate is low in 4.1 % in December.
“The economy of the country is continuing to resilience long -term economic recession, which means that the Fed is not imminent to continue its interest rate reduction,” said Corelogic's Chief Economist, Serma. Hep said. “And it is expected that economic activity will maintain robustness and continue to demonstrate a growth rate of 2 % or more, so it will be even more persuasive in the event of further financial looseness in the coming months.”
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According to David Souber, a SVP of Voxtur Analytics, an enterprise business development, interest rates may not be mentioned until the latter half of this year.
“Interest rate reduction [are] SOBER is not expected until the second half of this year. “This keeps the housing economy in a long -term MAL neglect, and the reasonable price is maintained at the lowest point of memory. Independent mortgage banks have the ability to provide a more innovative method of housing. If the mortgage market will continue to be 6 % in 2025.
One of the bright places is that there is the next president Donald Trump Management can promote greater economic growth, and therefore higher income can provide more purchasing power by Americans. Furthermore, even if the income does not increase, the decline in the household tax rate is expected to increase the disposable family income. RealTor.com housing prediction。
Beyond these scenarios, Hepp stated that HEPP has continued to add a new house for supplying, providing purchases for new construction, and keeps their sales strong. 。
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“We require that interest rates will soon fall,” said President Donald Trump earlier this month in a speech for the world economic forum in Davos, Switzerland. Powell refused to comment on his speech, but the Trump administration did not contact him.
“As the economy evolves, we will adjust the policy attitude by most promoting the maximum employment and price stability goals,” Powell said. “If the economy is powerful and the inflation does not continue to shift to 2 %, it can maintain a longer policy restraint.”
Consumers, who might have expected a positive rate reduction policy from 2025, must wait longer to relax from the high borrowing costs generated during the increase in Feds in recent years to fight inflation. Not.
“Inflation's concerns have been significantly eased, but they still remain,” said Michele Raneri, the vice president of US research and consulting in Transunion. “As a result, a few months ago, the rate reduction may be reduced next year than expected. Consumers continue to monitor their credit score and credit report, and confirm that they are in the best condition. It may be possible to act when the fee is lowered.
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