27 Apr Are interest rates going down this year?
Are interest rates going down this year?
The inflation news that came out this last week was not what we were hoping for to lower interest rates. The goal of the Federal reserve is a 2% annual inflation goal. Right now, consumers are spending more than they are taking in and that is adding to the rate of inflation.
The personal consumption price index came in at 2.7% in March, in addition real gross domestic product slowed to 1.6%. The first was above the predicted percent and the second was well below the consensus estimate. IN addition, the job market openings outnumber the available workers by 1.4 to 1, which helped keep wage pressures high.
“For now, it means the Fed’s not going to be cutting, and if [inflation] doesn’t come down, the Fed’s either going to have to hike at some point or keep rates higher for longer,” said LaVorgna, who was chief economist for the National Economic Council under former President Donald Trump. “Does that ultimately give us the hard landing?”
With all that in mind do not expect a decrease in interest rates this summer and the soonest we can expect a .25-point decrease is the fall. Fingers crossed.
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Jeff Anderson
The Anderson Team
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