Fed Hikes Rates

 

Fed Hikes Rates

 

The Federal Reserve raised interest rates for the first time since 2023 yesterday, announcing a quarter-percentage-point increase in benchmark rates and bringing the range to between 3.75% and 4%. Stocks closed down on the news (S&P 500 -0.5%, Dow -1.2%, Nasdaq -0.0%). See Federal Reserve 101 here. The rise marks Chair Kevin Warsh’s first effort to combat inflation, which has remained above the bank’s 2% target for over five years. The vote, which was unanimous, came despite calls by President Donald Trump to lower rates or see him end trade with dozens of countries—any with which the US has a deficit, including China, Mexico, Vietnam, and the EU (see map). Instead, the bank signaled the possibility of at least one more rate increase this year. Long-term Treasury yields had already priced in the expected hike and did not move significantly on the news. See how credit card debt, mortgages, and other household expenses are impacted by yesterday’s decision. ===================================================================== Remember, you're not alone with NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Advocacy  Annual Conference First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Retirement Calculator