It is hoped that the borrower who reduced the additional tax rate at the meeting on January 29 may wait for the Federal Reserve to get more economic relief borrowers.
The Fed is expected to stabilize its current benchmark interest rate between 4.25 % and 4.5 % on Wednesday. FactSet data shows that most economists also predict that the Fed will be reduced at a meeting on March 19, which means that the next time the Central Bank may reduce tax rates before the Central Bank May 7th meeting.
The pause of January will end at least temporarily, that is, the Fed's series of tax reduction rates began in September 2024, which reduced the federal capital interest rate by one percentage point. This helps to trim credit cards, the net worth of the house, and the lending cost of other debt, thereby providing some opportunities for asthma for consumers and enterprises with inflation.
But in December, the Federal Reserve said It is expected to cut less In 2025, Jerome Powell, Chairman of the United States, pointed out inflation This is still beyond the 2 % target of the Central Bank's annual. The most important thing is that economists say that the Federal Reserve is likely to want to take a treatment attitude towards the Trump administration's policy, such as increasing new tariffs and extensive deportation of immigrants. Can prove inflationEssence
"The Fed did not jump out of the gun to reduce interest rates faster. The further reason was that on the one hand, inflation did not disappear. They looked at the data carefully and still stubbornly higher than the goal. Inflation will improve again.
Secondly, he added: "The expected tariffs or large -scale deportation of the country are inflation. Therefore, the Federal Reserve is also correct in reducing interest rates."
This is the knowledge about the US -owned stoppage rate.
The Fed will announce its rate decision at 2:00 pm on January 29, and then hold a press conference with the Federal Reserve Chairman Jerome Powell at 2:30 pm in the United States.
The Federal Reserve reduced the benchmark rate three times last year and reduced September with a giant 0.5 percentage point. Then there are two continuous one 0.25 percentage points cut: At a conference in November, the second conference in December.
However, the suspension of early 2025 means that consumers cannot expect the additional exemption of borrowing costs.
LENDINGTREE's chief credit analyst Matt Schulz said in an email: "Anyone who wants the Federal Reserve to ride a bike at any time and save you from high interest rates." "Whether you talk about mortgage loans, car loans, The credit card is still anything else, this is the case. "
Schultz added that consumers should strive to control their higher debts because credit card interest rates and other borrowing costs are unlikely to change. He pointed out that transferred to 0 % balance transfer credit card or merged credit card debt through personal loan can prove that it can help reduce interest payment.
Schultz said that, given that they should still be able to find a stable interest rate on high -yield savings accounts, even since the Fed started to trim its benchmark rate last year, they should still be able to find stable interest rates on high -yield savings accounts. Savings, if there is a bright side. Some savings accounts still decrease to more than 4 % from about 5 % a year ago.
He said: "As the speed of the Federal Reserve decreases, the return of high -yield savings accounts has decreased from a record level. However, with the suspension of the Fed's stop, the decline should also slow down."
One of the disappointment of hunters, and homeowners who want to re -financing lower interest rates are stubborn mortgage interest rates. Although the Fed has cut three games last year, the average 30 -year house loan is still close to 7 %, close to 25 years.
Despite the reduction of the Federal Reserve, the interest rate of mortgage loans has not declined because house loans other than federal fund interest rates, including a wider economic trend and the changes in the rate of yields in the 10 -year fiscal bonds in the United States.
Experts said that considering the concerns of economists, President Trump's plan can prove that inflation and mortgage interest rates may not fall quickly.
Austin Walker, CEO Austin Walker, a housing finance company A. Walker & CO. CEO Austin Walker pointed out: "The universal consensus is that the impact of the potential policies related to taxes and tariffs on immigrants may remain unchanged."
Last week, in the annual event held by the World Economic Forum in Davos, Switzerland, Mr. Trump said that he "requires an immediately reduced interest rate. Similarly, they should fall from all over the world."
Experts say that Mr. Trump is unlikely to affect the Federal Reserve to reduce interest rates, because the central bank is an independent institution, and it decides to be based on economic data, rather than the order of elected officials.
The rate is set by the Federal Public Marketing Committee (FOMC). The committee is composed of 12 members-7 members from the Federal Reserve Committee; four from 11 reserved banks, and each reserve bank is rotating for one year. One Members of FOMC are presidents of the New York Federal Reserve Bank.
At the same time, Powell said him Will not step down If Mr. Trump, who had previously criticized Powell's performance, asked him to resign, and added that the president had no power to expel or degrade the Fed Chairman. His term of office as a US chair ended on May 15, 2026.
At the same time, economists predict that the speed of reduction in 2025 will decrease, but at the circumstances of May or even later, economists. However, a passage is whether the inflation rate may increase in early 2025 due to the Trump administration's policy.
Ernst & Young chief economist Gregory Daco said in an email: "It is important that as the new government's position, the policy uncertainty has exacerbated the prospects." It is predicted that the three 0.25 percentage points in June and September this year will be reduced. "This year, we expect the Fed to act with caution."