Instant view: FOMC holds rates in place and will slow balance sheet drawdown

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Instant view: FOMC holds rates in place and will slow balance sheet drawdown
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- The Federal Reserve on Wednesday said it would leave interest rates unchanged and announced plans to slow the speed of its balance sheet drawdown, after having spent much of the earlier part of the year warning of this shift.

“Ultimately, this could result in the mortgage and auto markets remaining relatively sluggish as consumers continue to wait for rates to fall. Indeed, if interest rates do not begin to decline until later in 2024, this could mean that many home buyers may hold off until later 2024 or even into 2025.”

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