OAN Newsroom Contributor Annyatama Bhowmik
Updated 1:30 PM PT – Wednesday, December 14, 2022
The Federal Reserve Board increased the Federal Funds Rate by 50 basis points, the highest rate since 2007. The benchmark has been raised to a target range of 4.25% to 4.50%.
On Wednesday the Federal Reserve delayed its campaign to cool the economy by raising the benchmark interest rate by 50 basis points. The rise comes amid early signs that persistently high inflation is finally starting to abate.
The decision, made at the two-day Federal Open Industry Commission meeting, is good news for the housing market as mortgage rates may fall. Home prices have recently deteriorated due to persistently high real estate prices, making it difficult for prospective buyers to purchase.
The Fed launched a campaign to counter rising inflation in March by raising the benchmark interest rate by 25 basis points. After that, it rose four times in a row in June, July, September and November.
The Federal Open Market Committee said future rate hikes should be expected.
“The Committee believes that continued increases in the target range are appropriate to achieve a sufficiently restrictive monetary policy stance to bring inflation back to 2% over time,” said a representative of the Committee. I expect there will be,” he said.
Federal officials expect rate cuts to begin in 2024, according to median forecasts.
In a statement, Treasury Secretary Janet Yellen said she expected inflation to drop significantly by the end of next year.
The Fed has been shining a light on unemployment and economic growth. By the end of next year, the Fed expects the unemployment rate to rise from 3.7% to 4.6%. This number is based on the culmination of the Fed’s strong attempt to control skyrocketing inflation.
Federal Reserve Chairman Jerome Powell is expected to reveal more details about the Federal Reserve’s plans. The Federal Open Market Committee has two meetings scheduled for early 2023.
https://www.oann.com/newsroom/mortgage-rates-may-decline-as-a-result-of-the-feds-50-basis-point-hike/?utm_source=rss&utm_medium=rss&utm_campaign=mortgage-rates-may-decline-as-a-result-of-the-feds-50-basis-point-hike Mortgage rates could fall as a result of Fed’s 50 basis point hike – One America News Network