The latest figures on consumer prices threaten to torpedo the prospect of multiple interest rate cuts from the Federal Reserve this year.
Personal Finance
The Nasdaq, S&P 500 and Dow Jones industrial average all rose after the Federal Reserve indicated it expects to issue three interest rate cuts in 2024.
The Federal Reserve left a key interest rate unchanged for now, but its statement indicates the central bank has shifted toward considering rate reductions.
The Federal Reserve kept its key interest rate unchanged Wednesday for a third straight time, and Chairman Jerome Powell said inflation has cooled.
The Fed kept its benchmark interest rate at its highest level in 22 years but left the door open for further rate hikes if inflation pressures accelerate.
The plan announced Wednesday by President Joe Biden is expected to help 125,000 student loan borrowers by eliminating debt through existing programs.
The benchmark 30-year home loan rate increase deals another blow to prospective homebuyers facing an increasingly unaffordable housing market.
The Federal Reserve’s decision indicates that it is moderating its fight against inflation as price pressures have eased.
Freddie Mac said the average rate on a 30-year home loan reached its highest level since 2002, which could increase costs for borrowers by hundreds of dollars a month.
The IRS has been tasked with looking into how to create a government-operated electronic free-file tax return system for all. But that doesn’t sit well with the big tax-prep companies.
The latest interest rate increase, though smaller than previous hikes, will likely further raise the costs of many consumer and business loans.
The increases cover IRAs as well as 401(k) and other retirement plans.
