Analysis: The Fed is expected to hold rates steady. Here’s what that means for you.
Federal Reserve Chair Jerome H. Powell speaks during a news conference in Washington in March 2019. . By Heather Long Heather Long Economics correspondent Email Bio Follow May 1 at 10:34 AM The Federal Reserve is widely expected to leave interest rates unchanged at the conclusion of its two-day policy meeting Wednesday.
A nearly 2.5 percent interest rate might feel high because it’s the highest rate the United States has seen in more than a decade. But it’s actually a low rate by historical standards Borrowers are happy: Interest rates around 2.5 percent makes it fairly cheap to borrow money and repay loans. There’s been some concern about the massive amount of corporate debt that companies have taken on and what would happen as interest rates rose. The Fed’s pause gives companies more time to sort that out. It’s a similar story for individuals who have a lot of debt — they get a respite knowing rates won’t go much higher.
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