The Fed and the Rate Hike
The Fed announced last week that interest rates would again be left alone.
Due to a weakening economy and declining housing activity, the Fed has yet again postponed the anticipated hike in interest rates. The interest rate hike won’t be revisited again until the next Federal Reserve meeting in mid-December.
The postponement of the rate hike is being met with a mix of criticism and praise. Many feel the economy is not being given the chance to recover and gain momentum by continuing to maintain low interest rates. Others are glad of the chance to enter the housing market locking in low rates and allowing new borrowers and investors the opportunity to help boost the economy over time.
Whichever stance you side with, the fact remains that the rates will remain the same for the time being. And as not even half of the Fed officials are in support of a rate hike before the end of the year, it could be a couple more months until we see significant changes.