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Fed expected to cut rates, but traders await policy outlook
Thursday, 19 December 2024 01:23 WIB | MARKET UPDATE |Federal Reserve

Markets are pricing in a near certainty that the Federal Reserve will cut interest rates by a quarter point on Wednesday, bringing the target range to 4.25% to 4.5%. The focal point for investors is central bank policymakers' economic outlook and the path forward for rate policy. The Fed will issue its decision at 2 p.m. Eastern on Wednesday, followed by Chair Jerome Powell's press conference at 2:30 p.m.
Loan interest rates remain high even as Fed has reduced rates
The Federal Reserve has dialed back interest rates by three-quarters of a point since the end of its September meeting, but borrowers aren't seeing a whole lot of savings just yet.

The rate on a 30-year fixed mortgage is sitting at 6.95% as of the week of Dec. 13, according to MND. That's up from 4.29% during the week of March 11, 2022 – and it's up from 6.12% the week of Sept. 13, 2024. Mortgage rates are tied to the 10-year Treasury note yield, which has climbed this fall.

Credit card rates haven't changed much since the Fed kicked off its rate cuts. They're sitting at 20.35% as of last week, according to Bankrate. That's down from 20.78% in September, but up from 16.34% in March 2022.

Yields on savings have cooled in the past three months, however. The annual percentage yield on a five-year certificate of deposit 2.86% in the week of Dec. 13, according to Haver. That's down slightly from 2.87% in mid-September, but up sharply from 0.50% in March 2022.(Cay) Newsmaker23

Source: CNBC

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