Fed Keeps Rate At 5.25
Fed Chair Says Consumer Credit Market Is Normal
September 22, 2023—The Federal Reserve kept its main rate, the Federal Funds Rate, unchanged on Wednesday at 5.25 percent. Fed Chair Jerome Powell said there was unanimous support among board members for keeping rates steady. He predicted one more rate hike before the end of the year then declining rates beginning next year.
"Now we're fairly close, we think, to where we need to get. It's just a question of reaching theright stance," he said at a press conference on Wednesday.
Specifically, Powell estimated the federal funds rate would reach 5.6 percent by the end of the year, come down to 5.1 percent in 2024, then further decline to 3.9 percent in 2025.
The rate impacts mortgages, consumer credit as well as interest the governm...