The Fed kept rates unchanged today, which was the consensus expectation on Wall St.
So what does that mean for you right now?
It means you probably shouldn’t buy a new house with a new mortgage unless you really need to.
But it also means you’ll continue to earn 4%+ on your emergency fund.
As far as actionable ideas, there are none. Maintain course.
THE ECONOMY’S REPORT CARD
At 3.9%, inflation is still stubbornly above their 2% target rate.
Job gains have slowed, unemployment has risen, and housing remains soft, but not ENOUGH because…
Consumer spending is still robust. (So if we collectively stop buying stuff, maybe they’ll stop hiking rates before we’re all unemployed?)
And as we all know energy and food are still way too expensive.
GAZING INTO THEIR CRYSTAL BALLS…
Since inflation remains sticky, They now predict only 1-2 rate cuts next year instead of 3-4.
That also means they think rates will stay higher for longer.
Their updated projected funds rates are 5.6% by the end of this year, 5.1% by the end of next year and 3.9% by the end of 2025.
Based on that, if you’re waiting to buy a house you’ll probably be waiting until 2025.
(But you’ll keep earning ~4% on your cash. Woohoo!)
