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So the Fed left interest rates unchanged, but what does that mean for you?

So The Fed Left Interest Rates Unchanged, But What Does That Mean For You? paper is one as regards the Finance, Forex categories, posted at our writer Erick Emerson by January 31, 2019, that paragraph can search immediately upon this tags list Fed, interest, left, rates, unchanged. We all pleased to glad you and providing the others blogpost like finance along with I always writting those blogpost everyday.

The Federal Reserve isn’t raising interest rates this month — meaning that some consumers can breathe a sigh of relief.

Fed officials said Wednesday that they voted unanimously not to raise the benchmark federal funds rate in January, after having hiked it by 25 basis points a month prior.

“In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” the Federal Open Market Committee (FOMC), which decides the Fed’s rate policy, said in its statement.

Coming after a year where the Fed raised interest rates four times, the news was almost certainly welcome for many consumers carrying high amounts of debt. “It gives borrowers a reprieve from rising rates, but borrowers still need to operate under the assumption that rates will rise further in 2019,” said Greg McBride, chief financial analyst at personal-finance website Bankrate.com. “So use this as an opportunity to keep paying down debt, refinancing into fixed rates or grab low interest rate offers.”

That said, McBride advised consumers to take the news with a grain of salt. The Fed generally does not raise interest rates in consecutive months.

Looking ahead, the Fed theoretically could still raise interest rates this year, meaning that January’s announcement could just be an indication it’s taking a wait-and-see approach based on the state of the economy. Back in December, the Fed said it expected two increase in 2019. However, the FOMC dropped that language from their January announcement.

Nevertheless, here is what consumers can expect:


Use this as an opportunity to keep paying down debt, refinancing into fixed rates or grab low interest rate offers.”


—Greg McBride, chief financial analyst at personal-finance website Bankrate.com


Mortgage rates may remain low

Ahead of the Fed’s decision, the 30-year fixed rate mortgage average was 4.45%, having stayed at that level for three straight weeks. And the Fed’s choice to hold steady on interest rates could keep mortgage rates there.

But that’s not guaranteed. Mortgage rates generally track the 10-year U.S. Treasury note and not the federal funds rate, which is a short-term rate at which banks lend money to each other. Because mortgage rates are based on long-term interest rates, the major concerns that impact their fluctuations are related to the overall health of the global economy.

To the extent that the Fed’s policy will have ripple effects, mortgage rates could be affected — as is likely to be the case if the monetary policy body ends up raising rates this year. However, concerns regarding trade relations between the U.S. and China could prove just as influential.

See: Half of Americans with this credit card regretted getting one

Yields on savings accounts could continue to increase — no thanks to the Fed

A rise in interest rates is good news for savers because it typically leads to a corresponding increase on the yields offer for savings accounts and products such as certificates of deposit.

Savers need not despair that the Fed didn’t raise interest rates this month. That’s because competition for consumers’ deposits has been heating up for some time now.

“Even in the absence of a Fed hike, there’s still a lot of competition among online banks to attract consumer deposits,” McBride said. “If the Fed is on the sidelines for an extended period, that will rob some of the momentum and yields might slack out, but will resume rising when it’s evident the Fed is going to raise rates again.”

Credit-card rates should steady after months of increases

When the Federal Reserve raised rates back in December, experts predicted consumers could owe up to $2.4 billion in additional credit-card interest payments annually as a result. “As rates rise, it only gets more expensive and takes more time to pay off that debt. That means big trouble for Americans who are already loaded down with…

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